Reference : Revealed preference tests of collectively rational consumption behavior: formulations...
Scientific journals : Article
Business & economic sciences : Quantitative methods in economics & management
http://hdl.handle.net/2268/155239
Revealed preference tests of collectively rational consumption behavior: formulations and algorithms
English
Talla Nobibon, Fabrice []
Cherchye, Laurens []
Crama, Yves mailto [Université de Liège - ULiège > HEC-Ecole de gestion : UER > Recherche opérationnelle et gestion de la production >]
Demuynck, Thomas []
De Rock, Bram []
Spieksma, Frits C.R. []
Nov-2016
Operations Research
Operations Research Society of America
64
6
1197–1216
Yes (verified by ORBi)
International
0030-364X
1526-5463
Baltimore
MD
[en] revealed preference axioms ; rationality ; mixed-integer programming ; global optimization ; simulated annealing
[en] This paper focuses on revealed preference tests of the collective model of household consumption. We start by showing that the decision problems corresponding to testing collective rationality are {\sc np}-complete. This makes the application of these tests problematic for (increasingly available) large(r) scale data sets. We then present two approaches to overcome this negative result. First, we introduce exact algorithms based on mixed-integer programming ({\sc mip}) formulations of the collective rationality tests, which can be usefully applied to medium sized data sets. Next, we propose simulated annealing heuristics, which allow for efficient testing of the collective model in the case of large data sets. We illustrate our methods by a number of computational experiments based on Dutch labor supply data.
QuantOM HEC-ULg
Politique Scientifique Fédérale (Belgique) = Belgian Federal Science Policy
PAI COMEX
Researchers
http://hdl.handle.net/2268/155239
10.1287/opre.2016.1527

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