# How Rational are your Choice Data?

@inproceedings{Dean2010HowRA, title={How Rational are your Choice Data?}, author={Mark Dean and I. M. Crawford and Hiroki Nishimura and Debraj Ray and Michael Richter and Joerg Stoye and Juan Carlos Suarez}, year={2010} }

We present an algorithm that finds the size of the largest subset of a choice data set that is consistent with acyclicality. Our algorithm is orders of magnitude more efficient than existing methods. It can be used to calculate measures of rationality, such as the Houtman-Maks index and the minimum multiple rationales, that have been previously impractical. We also develop a new measure of how close a data set is to rationality. Further, we demonstrate the efficiency of our algorithm on data… Expand

#### 15 Citations

How Many Types are There?

- Mathematics
- 2013

We consider a revealed preference‐based method that will bound the minimal partition of consumer microdata into a set of preference types such that the data are perfectly rationalisable by standard… Expand

Goodness-of-Fit Measures for Revealed Preference Tests: Complexity Results and Algorithms

- Mathematics, Computer Science
- TEAC
- 2014

NP-hardness results are obtained by reductions from the independent set problem and it is shown that this reduction can be used to prove that no approximation algorithm achieving a ratio of O(n1 − Δ), Δ ;> 0 exists for Varian’s index, nor for Houtman-Maks’ index (unless P = NP). Expand

Goodness of Fit Measures for Revealed Preference Tests: Complexity Results and Algorithms

- 2012

We provide results on the computational complexity of goodness of t measures (i.e. Afriat's effi ciency index, Varian's effi ciency vector-index and the Houtman-Maks index) associated with several… Expand

Note on goodness-of-fit measures for the revealed preference test: The computational complexity of the minimum cost index

- Mathematics
- 2015

The purpose of this paper is to show that computing the minimum cost index (MCI) for a given price-amount data set, proposed by Dean and Martin (2010, 2015) as a goodness-of-fit measure for the… Expand

Choice by sequential procedures

- Economics, Computer Science
- Games Econ. Behav.
- 2013

We propose a rule of decision-making, the sequential procedure guided by routes, and show that three influential boundedly rational choice models can be equivalently understood as special cases of… Expand

A Measure of Rationality and Welfare

- Economics
- Journal of Political Economy
- 2015

Evidence showing that individual behavior often deviates from the classical principle of preference maximization has raised at least two important questions: (1) How serious are the deviations? (2)… Expand

WORKING PAPERS Who Is ( More ) Rational ?

- 2011

Revealed preference theory o¤ers a criterion for decision-making quality: if decisions are high quality then there exists a utility function that the choices maximize. We conduct a large-scale
eld… Expand

Who is (More) Rational?

- Economics
- 2011

Revealed preference theory o¤ers a criterion for decision-making quality: if decisions are high quality then there exists a utility function that the choices maximize. We conduct a large-scale ?eld… Expand

Kuzmics , Christoph Working Paper Preferences under ignorance

- 2015

A decision maker (DM) makes choices from different sets of alternatives. The DM is initially fully ignorant of the payoff associated to each alternative, and learns these payoffs only after a large… Expand

Preferences Under Ignorance

- Mathematics, Economics
- 2015

A decision maker (DM) makes choices from di erent sets of alternatives. The DM is initially fully ignorant of the payo associated to each alternative, and learns these payo s only after a large… Expand

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