Testing for rationality: the case of discrete choice data

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Abstract

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
Volume60
Issue number3
DOIs
Publication statusPublished - 1 Sept 1998

Keywords

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

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