Title: Two Comments on the Principle of Revealed Preference
Abstract:We present two arguments suggesting that the principle of revealed preference facilitates the introduction of procedural and psychological aspects of choice to economic models. First, some choice proc...We present two arguments suggesting that the principle of revealed preference facilitates the introduction of procedural and psychological aspects of choice to economic models. First, some choice procedures cannot be described as the outcome of maximizing a preference relation. However, they can be characterized and differentiated based on a simple revealed preference argument, i.e. based on simple properties of choice. Second, even if a choice procedure corresponds to maximizing a preference relation, there may still be a revealed preference justification to study the psychology of the procedure. The information concerning the available set of alternatives is often coupled with other information pertinent to the psychology of choice. This latter information can shed light on aspects of choice not fully captured by a preference relation, and hence should be part of the revealed preference analysis.Read More
Publication Year: 2006
Publication Date: 2006-01-01
Language: en
Type: article
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Cited By Count: 16
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