The housing problem and revealed preference theory: duality and an application

Ivar Ekeland and Alfred Galichon

Economic Theory, 2013, vol. 54, issue 3, 425-441

Abstract: This paper exhibits a duality between the theory of revealed preference of Afriat and the housing allocation problem of Shapley and Scarf. In particular, it is shown that Afriat’s theorem can be interpreted as a second welfare theorem in the housing problem. Using this duality, the revealed preference problem is connected to an optimal assignment problem, and a geometrical characterization of the rationalizability of experiment data is given. This allows in turn to give new indices of rationalizability of the data and to define weaker notions of rationalizability, in the spirit of Afriat’s efficiency index. Copyright Springer-Verlag 2013

Keywords: Revealed preferences; Afriat’s theorem; Optimal assignments; Indivisible allocations; Primary D11; Secondary C60; C78 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (9)

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Working Paper: The Housing Problem and Revealed Preference Theory: Duality and an application (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:spr:joecth:v:54:y:2013:i:3:p:425-441

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DOI: 10.1007/s00199-012-0719-x

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