Abstract
Given any observed demand behavior by means of a demand function, we quantify by how much it departs from rationality. Using a recent elaboration of the almost implies near principle, the measure of the gap is the smallest norm of the correcting matrix that would yield a Slutsky matrix with its standard rationality properties (symmetry, singularity, and negative semi-definiteness). A useful classification of departures from rationality is suggested as a result. Variants, examples, and applications are discussed, and illustrations are provided using several bounded rationality models.
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