Testing strictly concave rationality

摘要: Abstract We prove that the Strong Axiom of Revealed Preference tests existence a strictly quasiconcave (or concave, monotone) utility function generating finitely many demand observations. This sharpens earlier results Afriat, Diewert, and Varian tested (“nonparametrically”) piecewise linear function. For finite data sets, one implication our result is even some weak types rational behavior—maximization pseudotransitive or semitransitive preferences—are observationally equivalent to maximization continuous, monotone functions. And for infinitely observations, basis several new rationality theorems.