Individual Preference Rankings Compatible with Prices, Income Distributions and Total Resources

TY - UNPB

T1 - Individual Preference Rankings Compatible with Prices, Income Distributions and Total Resources

AU - Balasko, Yves

AU - Tvede, Mich

N1 - JEL classification: D1, D5

PY - 2009

Y1 - 2009

N2 - We consider the problem of determining the individual preference rankings that are necessarily implied by a dataset consisting of prices, income distributions and total resources. We show the equivalence between the compatibility with individual preference rankings and the existence of a solution to a set of linear equalities and inequalities. Using this characterization, we give new proofs of the rationalizability of finite data sets where total resources are close to being collinear and the contractibility and pathconnectedness of the set that consists of rationalizable finite datasets.

AB - We consider the problem of determining the individual preference rankings that are necessarily implied by a dataset consisting of prices, income distributions and total resources. We show the equivalence between the compatibility with individual preference rankings and the existence of a solution to a set of linear equalities and inequalities. Using this characterization, we give new proofs of the rationalizability of finite data sets where total resources are close to being collinear and the contractibility and pathconnectedness of the set that consists of rationalizable finite datasets.

KW - Faculty of Social Sciences

KW - equilibrium manifold

KW - pathconnectedness

KW - testability

KW - rationalizability

M3 - Working paper

BT - Individual Preference Rankings Compatible with Prices, Income Distributions and Total Resources

PB - Department of Economics, University of Copenhagen

ER -