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单词 revealed preference
释义
revealed preference

Economics
  • Information about preferences revealed by economic choices. As prices and income change a consumer will make different choices. The observed choices can be used to construct a preference order for the consumer. Consider three bundles of goods, A, B, and C. An individual, who could have afforded something preferred to B (for example, an alternative with more of all goods), chooses A: A is thus strictly preferred to B. If the consumer chooses A but could not afford C, it can in some cases still be shown that A is preferred to C. This occurs if B is chosen when something preferred to C could have been afforded: B is thus preferred to C. With transitive preferences, if A is preferred to B and B is preferred to C, then A is established to be revealed preferred to C, even though the consumer has not been observed making a direct comparison between A and C. See also WARP.


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