Author:

Keywords:

Generalized axiom of revealed preference, Directed graph, Strongly connected components, Computational complexity, Microeconomics

Abstract:

This note presents an algorithm for testing the generalized axiom of revealed preference in time O(n2), where n is the number of observations in a given data set. Furthermore, we prove a lower bound of (n log n) on the running time of any algorithm for testing different axioms of revealed preference.