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The use of revealed preference in a fuzzy setting. Some preliminary results

E. E. Haven. Consortium McGill University


The Weak Axiom of Revealed Preference (WARP) is an important axiom in microeconomic theory. This paper discusses the topic in a fuzzy setting. Using simple concepts of fuzzy mathematics, we show that although we violate WARP we can still be declared rational up to some degree.

This is a useful result. The paper discusses how we could properly define, within a fuzzy setting, a "Greatest set". The choice function is defined and equated to the nearest Maximal set or to the nearest Greatest set, both of which are "crisp" sets. A simple formulation is proposed, which may enable us to assert degrees of rationality even tough we violate WARP.

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