Just-noticeable difference as a behavioural foundation of the critical cost-efficiency
Critical cost-efficiency index (or CCEI), proposed in Afriat (1972, 1973) and Varian (1990), is the most commonly used measure of revealed preference violations. By representing consumer preference with interval orders, as in Fishburn (1970), we show that this index is equivalent to a particular not...
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| Format: | Working paper |
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University of Oxford
2018
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