[en] In this talk, we discuss an extension of the strong axiom of revealed preferences to
collective households. The question that we address is whether a set of observed
consumption baskets can be decomposed in such a way that each of the derived data
sets reflects the choices of a “rational” (i.e., utility-maximizing) individual member
of the household.
Although testing revealed preference axioms on data generated by a single decisionmaker
can be done in polynomial time, the extension to two-member households is
NP-complete.
We propose two algorithms for testing the collective consumption model on large
data sets. The first one is an exact algorithm based on a new mixed-integer programming
formulation, whereas the second one is a heuristic based on a simulated
annealing procedure that solves a global optimization formulation of the problem.
Computational experiments are performed on real-life data.
Research Center/Unit :
QuantOM
Disciplines :
Quantitative methods in economics & management
Author, co-author :
Talla Nobibon, Fabrice; Katholieke Universiteit Leuven - KUL
Cherchye, Laurens; Katholieke Universiteit Leuven - KUL
Crama, Yves ; Université de Liège - ULiège > HEC-Ecole de gestion : UER > Recherche opérationnelle et gestion de la production
Demuynck, Thomas; Katholieke Universiteit Leuven - KUL
De Rock, Bram; Université Libre de Bruxelles - ULB
Spieksma, Frits; Katholieke Universiteit Leuven - KUL
Language :
English
Title :
Algorithms for testing the collective consumption model
