Related papers: Testing Consumer Rationality using Perfect Graphs …
We study a setting where an analyst has access to purely aggregate information about the consumption choices of a heterogenous population of individuals. We show that observing the statistical moments of market demand allows the analyst to…
Consumer heterogeneity in revealed-preference data is larger than bilateral rationality tests can reveal. We construct a continuous nonparametric metric of this hidden heterogeneity by repeatedly subsampling choices, partitioning consumers…
This paper studies whether rationality can be computed. Rationality is defined as the use of complete information, which is processed with a perfect biological or physical brain, in an optimized fashion. To compute rationality one needs to…
A rational behavior of a consumer is analyzed when the user participates in a Peak Time Rebate (PTR) mechanism, which is a demand response (DR) incentive program based on a baseline. A multi-stage stochastic programming is proposed from the…
The problem of designing a profit-maximizing, Bayesian incentive compatible and individually rational mechanism with flexible consumers and costly heterogeneous supply is considered. In our setup, each consumer is associated with a…
We study the rational verification problem which consists in verifying the correctness of a system executing in an environment that is assumed to behave rationally. We consider the model of rationality in which the environment only executes…
The problem of demand inversion - a crucial step in the estimation of random utility discrete-choice models - is equivalent to the determination of stable outcomes in two-sided matching models. This equivalence applies to random utility…
This paper develops a recent line of economic theory seeking to understand public goods economies using methods of topological analysis. Our first main result is a very clean characterization of the economy's core (the standard solution…
It is currently an unsolved problem to determine whether a $\triangle$-free planar graph $G$ contains an independent set $A$ such that $G[V_G\setminus A]$ is $2$-choosable. However, in this paper, we take a slightly different approach by…
We consider assortment optimization over a continuous spectrum of products represented by the unit interval, where the seller's problem consists of determining the optimal subset of products to offer to potential customers. To describe the…
This paper presents the Sequential Rationality Hypothesis, which argues that consumers are better able to make utility-maximizing decisions when products appear in sequential pairwise comparisons rather than in simultaneous multi-option…
The feedback set problems are about removing the minimum number of vertices or edges from a graph to break all its cycles. Much effort has gone into understanding their complexity on planar graphs as well as on graphs of bounded degree. We…
An important goal of empirical demand analysis is choice and welfare prediction on counterfactual budget sets arising from potential policy-interventions. Such predictions are more credible when made without arbitrary…
Large language models (LLMs) are increasingly used for tasks that implicitly reduce to Boolean satisfiability (SAT), yet their reasoning ability on SAT remains unclear. We present a systematic study of LLMs on 2-SAT and 3-SAT, together with…
I develop a revealed preference framework to test whether an aggregate allocation of indivisible objects satisfies Pareto efficiency and individual rationality (PI) without observing individual preferences. Exploiting the type-based…
The satisfiability problem is known to be $\mathbf{NP}$-complete in general and for many restricted cases. One way to restrict instances of $k$-SAT is to limit the number of times a variable can be occurred. It was shown that for an…
We propose an approach for showing rationality of an algebraic variety $X$. We try to cover $X$ by rational curves of certain type and count how many curves pass through a generic point. If the answer is $1$, then we can sometimes reduce…
All possible types of deterministic choice behavior are classified by their degree of irrationality. This classification is performed in three steps: (1) select a benchmark of rationality, for which this degree is zero; (2) endow the set of…
In {\em set-system auctions}, there are several overlapping teams of agents, and a task that can be completed by any of these teams. The buyer's goal is to hire a team and pay as little as possible. Recently, Karlin, Kempe and Tamir…
A long-standing question about consumer behavior is whether individuals' observed purchase decisions satisfy the revealed preference (RP) axioms of the utility maximization theory (UMT). Researchers using survey or experimental panel data…