caa a22 4500 60548886X CHVBK 20210128100457.0 cr unu---uuuuu 210128e20150901xx s 000 0 eng 10.1007/s10683-014-9407-y doi (NATIONALLICENCE)springer-10.1007/s10683-014-9407-y A caveat for the application of the critical cost efficiency index in induced budget experiments [Elektronische Daten] [James Murphy, Samiran Banerjee] Afriat's (Int Econ Rev 14(2): 460-472, 1973) critical cost efficiency index is often used to measure the extent to which experimental choice data violate the axioms of revealed preference. Under certain conditions, the index yields a value of one—which typically signifies rational choice—when, in fact, the choice violates the axioms. We term this a cost efficient violation (CEV) of the axioms, clarify the conditions under which it arises, and find that CEVs comprise the majority of violations in three of four studies reviewed. We suggest changes in experiment design to eliminate or reduce the likelihood of CEVs. Economic Science Association, 2014 Afriat nationallicence Critical cost efficiency index nationallicence Rationality nationallicence Revealed preference nationallicence Murphy James Department of Economics, Richards College of Business, University of West Georgia, 30118, Carrollton, GA, USA aut Banerjee Samiran Department of Economics, Emory University, 30322-2240, Atlanta, GA, USA aut Experimental Economics Springer US; http://www.springer-ny.com 18/3(2015-09-01), 356-365 1386-4157 18:3<356 2015 18 10683 https://doi.org/10.1007/s10683-014-9407-y text/html Onlinezugriff via DOI BK010053 XK010053 XK010000 Metadata rights reserved Springer special CC-BY-NC licence nationallicence 1 research-article jats NATIONALLICENCE NATIONALLICENCE NL-springer NATIONALLICENCE 856 40 https://doi.org/10.1007/s10683-014-9407-y text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Murphy James Department of Economics, Richards College of Business, University of West Georgia, 30118, Carrollton, GA, USA aut NATIONALLICENCE 700 1- Banerjee Samiran Department of Economics, Emory University, 30322-2240, Atlanta, GA, USA aut NATIONALLICENCE 773 0- Experimental Economics Springer US; http://www.springer-ny.com 18/3(2015-09-01), 356-365 1386-4157 18:3<356 2015 18 10683