Are Consumers (Approximately) Rational? Shifting the Burden of Proof
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| Název: | Are Consumers (Approximately) Rational? Shifting the Burden of Proof |
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| Autoři: | Cherchye, Laurens, Demuynck, Thomas, De Rock, Bram, Lanier, Joshua |
| Zdroj: | Review of Economics and Statistics. :1-15 |
| Informace o vydavateli: | MIT Press, 2025. |
| Rok vydání: | 2025 |
| Témata: | 3802 Econometrics, Economics, 0502 economics and business, 05 social sciences, 1403 Econometrics, 3502 Banking, finance and investment, 1402 Applied Economics, 3801 Applied economics |
| Popis: | We present a statistical test for the hypothesis of (approximate) utility maximization on the basis of nonparametric revealed preference conditions. We take as null hypothesis that the consumer behaves randomly, and we reject this hypothesis only if the data provides sufficient evidence to support the alternative hypothesis of approximate utility maximization. Our statistical test uses a permutation method to operationalize the principle of random consumption behavior. We show that our test (i) is valid for any sample size under the null and (ii) has an asymptotic power of one. We also provide simulated power results and two empirical applications. |
| Druh dokumentu: | Article |
| Jazyk: | English |
| ISSN: | 1530-9142 0034-6535 |
| DOI: | 10.1162/rest_a_01360 |
| Přístupová URL adresa: | https://lirias.kuleuven.be/handle/20.500.12942/724203 https://doi.org/10.1162/rest_a_01360 |
| Přístupové číslo: | edsair.doi.dedup.....ce217974fabb6dd1cd87e54d6affab1e |
| Databáze: | OpenAIRE |
Nájsť tento článok vo Web of Science | Abstrakt: | We present a statistical test for the hypothesis of (approximate) utility maximization on the basis of nonparametric revealed preference conditions. We take as null hypothesis that the consumer behaves randomly, and we reject this hypothesis only if the data provides sufficient evidence to support the alternative hypothesis of approximate utility maximization. Our statistical test uses a permutation method to operationalize the principle of random consumption behavior. We show that our test (i) is valid for any sample size under the null and (ii) has an asymptotic power of one. We also provide simulated power results and two empirical applications. |
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| ISSN: | 15309142 00346535 |
| DOI: | 10.1162/rest_a_01360 |