Testing for rationality: the case of discrete choice data

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When working with micro data on consumer demand, there are many different situations where decisions involve only discrete choices. In this context, conditions under which an underlying rational preference structure exists are derived. Moreover, by introducing flexibility into the model, it is possible to identify nonrational behavior in the sample.

Original languageEnglish
Pages (from-to)255-261
Number of pages7
JournalEconomics Letters
Issue number3
Publication statusPublished - 1 Sept 1998


  • 022
  • 721
  • Conditional indirect utility function
  • Discrete choice data
  • Rationality


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