Revealed Preference Analysis for Convex Rationalizations on Nonlinear Budget Sets
22 Pages Posted: 30 Jan 2013
Date Written: November 1, 2012
We present necessary and sufficient revealed preference conditions to verify whether a finite data set on nonlinear budget sets is consistent with the maximization of a quasi–concave utility function. Our results can be used to test for convexity of the underlying preference relation. We also show that in many settings, our conditions are easy to use in practical applications.
Keywords: quasi–concavity, convex preferences, nonlinear budget sets, revealed preference conditions
JEL Classification: C14, D11
Suggested Citation: Suggested Citation