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Unifying Consumer and Information Economics

Our manuscript on unifying deterministic and stochastic revealed preference is on arXiv! We unify two prominent lines of work in economics, namely, revealed preference in consumer economics and identifying rational inattention in information economics. Our paper shows the key testable conditions in both areas are equivalent due to Blackwell dominance (partial order theory). A major application of this finding is to extend robustness measures of rationality formulated by Afriat, Varian, Houthakker to information economics to quantify irrationality in human decision-making.

This manuscript is under review at ACM Transactions in Economics and Computation.