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Revelation of Preferences

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Abstract

Competitive rational consumers reveal their preferences through their market behaviour, as was made clear by Samuelson’s ( 1947) revealed preference approach and by the literature on demand theory. Any bundle of commodities less costly than his chosen bundle must be less appreciated by a rational consumer than his chosen bundle.

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Authors

Editor information

John Eatwell Murray Milgate Peter Newman

Copyright information

© 1989 Palgrave Macmillan, a division of Macmillan Publishers Limited

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Laffont, JJ. (1989). Revelation of Preferences. In: Eatwell, J., Milgate, M., Newman, P. (eds) Allocation, Information and Markets. The New Palgrave. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-20215-7_27

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