A contemporary research agenda in behavioral economics and neuroeconomics aims to
identify individual differences and (neuro) psychological correlates of rationality. This …

We propose a new measure of deviations from expected utility theory. For any positive
number e, we give a characterization of the datasets with a rationalization that is within e (in …

Despite its ad hoc nature and lack of an appealing economic interpretation, the critical cost-
efficiency index (or CCEI) proposed in Afriat (1973) is one of the most widespread measures …

Abstract Afriat's Theorem (1967) states that a dataset can be thought of as being generated
by a consumer maximizing a continuous and increasing utility function if and only if it is free …

We propose a conceptual framework for counterfactual and welfare analysis for approximate
models. Our key assumption is that model approximation error is the same magnitude at …

This note provides a critical discussion of the\textit {Critical Cost-Efficiency Index}(CCEI) as
used to assess deviations from utility-maximizing behavior. I argue that the CCEI is hard to …

We provide necessary and sufficient conditions for expected utility and risk-averse expected
utility to rationalize behavior when the decision maker faces linear probability-prize …