Back What's new
  • Update Regarding Multitracks + Registration

    It's clear that this thread needs some love and attention. A lot of the links have either expired or been miss-labelled. With the amount of tracks there are, this is quite a practice. I have made the decision to lock this thread from further replies and to put out this notice that I will be refreshing this thread with updated links and guidance where needed.

    I will update the thread on multitracks and the first post with any forth coming updates about this in due course. For information - I have also disabled user registrations to do some tidyup. Stay tuned.

revealed

Revealed preference theory, pioneered by economist Paul Anthony Samuelson in 1938, is a method of analyzing choices made by individuals, mostly used for comparing the influence of policies on consumer behavior. Revealed preference models assume that the preferences of consumers can be revealed by their purchasing habits.
Revealed preference theory arose because existing theories of consumer demand were based on a diminishing marginal rate of substitution (MRS). This diminishing MRS relied on the assumption that consumers make consumption decisions to maximise their utility. While utility maximisation was not a controversial assumption, the underlying utility functions could not be measured with great certainty. Revealed preference theory was a means to reconcile demand theory by defining utility functions by observing behaviour.
Therefore, revealed preference is a way to infer the preferences of individuals given the observed choices. It contrasts with attempts to directly measure preferences or utility, for example through stated preferences. Taking economics to be an empirical subject, there is the issue that one cannot observe preferences. In other words, according to advocates of revealed preference theory "It is not what you say, it is what you do that reveals what you want."

Please Log in to view URLs that have been listed here. It's free and quick.
Back
Top