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Revealed Preference Test and Shortest Path Problem; Graph Theoretic Structure of the Rationalizability Test

Kohei Shiozawa ()
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Kohei Shiozawa: Graduate School of Economics, Osaka University

No 15-17-Rev.2, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: This paper presents some substantial relationships between the revealed preference test for a data set and the shortest path problem of a weighted graph. We give a unified perspective of several forms of rationalizability tests based on the shortest path problem and an additional graph the- oretic structure, which we call the shortest path problem with weight adjustment. Furthermore, the proposed structure is used to extend the result of Quah (2014), which sharpened the classical Afriat's Theorem-type result.

Keywords: Revealed preference; rationalizability; Afriat's inequalities; generalized axiom of re-vealed preference; shortest path problem (search for similar items in EconPapers)
JEL-codes: C60 D11 (search for similar items in EconPapers)
Date: 2015-06, Revised 2016-08
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