Technical Report Revealed Preference Test and Shortest Path Problem; Graph Theoretic Structure of the Rationalizability Test

Shiozawa, Kohei

15-17-pp.1 - 24 , 2016-08 , Graduate School of Economics and Osaka School of International Public Policy (OSIPP) Osaka University
* Revised: [15-17, 2015]
* Revised: [15-17-Rev, 2015]
This paper presents some substantial relationships between the revealed preference test for a data set and the shortest path problem of a weighted graph. We give a unified perspective of several forms of rationalizability tests based on the shortest path problem and an additional graph theoretic structure, which we call the shortest path problem with weight adjustment. Furthermore, the proposed structure is used to extend the result of Quah (2014), which sharpened the classical Afriat’s Theorem-type result.

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