# How Rational are your Choice Data?

@inproceedings{Dean2010HowRA, title={How Rational are your Choice Data?}, author={Mark Dean and Ian Crawford and Hiroki Nishimura and Debraj Ray and Michael Richter and Joerg Stoye and Juan Carlos Su{\'a}rez}, 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…

## 14 Citations

### How Many Types are There?

- Economics
- 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…

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

- Computer ScienceTEAC
- 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).

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

- Computer Science
- 2012

The 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 constant factor approximations algorithm exists for Varian's index, nor for Houtman-Maks' index (unless P = NP).

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

- Computer Science
- 2015

It is shown 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 revealed preference test, is NP-hard.

### A Measure of Rationality and Welfare

- EconomicsJournal 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)…

### Who is (More) Rational?

- Economics, Psychology
- 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…

### Kuzmics , Christoph Working Paper Preferences under ignorance

- Economics
- 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…

### Preferences Under Ignorance

- EconomicsInternational Economic Review
- 2018

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…

### Série des Documents de Travail n ° 2017-52 Preferences under ignorance O . GOSSNER

- Economics
- 2018

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

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