Two Simple Algorithms for Generating a Subset of Data Consistent with WARP and Other Binary Relations

John Gross and Dan Kaiser

Journal of Business & Economic Statistics, 1996, vol. 14, issue 2, 251-55

Abstract: The authors give two algorithms which partition data into two subsets, a set consistent with the weak axiom of revealed preference (WARP) and its complement. Their main contribution is a very fast, but inexact, algorithm. The authors also describe an exact algorithm which will be impractical for large data sets. These same algorithms may be applied to several other binary relationships such the nonparametric production axioms. Since violations of WARP are also violations of the strong and generalized axioms, these algorithms are a logical first step in computing subsets consistent with these relations.

Date: 1996
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