Chambers, Christopher P. and Echenique, Federico (2006) Supermodularizability. Social Science Working Paper, 1248. California Institute of Technology , Pasadena, CA. (Unpublished) http://resolver.caltech.edu/CaltechAUTHORS:20170802-103018989
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Abstract
We study the ordinal content of assuming supermodularity, including conditions under which a binary relation can be represented by a supermodular function. When applied to revealed-preference relations, our results imply that supermodularity is some times not refutable: A consumer’s choices can be rationalized with a supermodular utility function if they can be rationalized with a monotonic utility function. Hence, supermodularity is not empirically distinguishable from monotonicity. We present applications to assortative matching, decision under uncertainty, and to testing production technologies.
| Item Type: | Report or Paper (Working Paper) |
|---|---|
| Group: | Social Science Working Papers |
| Subject Keywords: | Supermodular, Quasisupermodular, Afriat's Theorem, Assortative Matching, Uncertainty Aversion, Choquet Expected Utility |
| Classification Code: | JEL: D11, D24, C78 |
| Record Number: | CaltechAUTHORS:20170802-103018989 |
| Persistent URL: | http://resolver.caltech.edu/CaltechAUTHORS:20170802-103018989 |
| Usage Policy: | No commercial reproduction, distribution, display or performance rights in this work are provided. |
| ID Code: | 79750 |
| Collection: | CaltechAUTHORS |
| Deposited By: | Hanna Storlie |
| Deposited On: | 02 Aug 2017 17:46 |
| Last Modified: | 02 Aug 2017 17:46 |
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