Non-rationalizable individuals and stochastic rationalizability

Changkuk Im and John Rehbeck

Economics Letters, 2022, vol. 219, issue C

Abstract: Experimental work regularly finds that individual choices are not deterministically rationalized by well-defined preferences. Nonetheless, recent work shows that data collected from many individuals can be stochastically rationalized by a distribution of well-defined preferences. We study the relationship between deterministic and stochastic rationalizability. We show that a population can be stochastically rationalized even when half of the individuals in the population cannot be deterministically rationalized.

Keywords: Stochastic rationalizability; Revealed preference; Demand types (search for similar items in EconPapers)
JEL-codes: D01 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:219:y:2022:i:c:s0165176522002853

DOI: 10.1016/j.econlet.2022.110786

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