The Consumer Problem

2020 ◽  
pp. 123-168
Author(s):  
Robert G. Chambers
Keyword(s):  
Revealed Preference ◽  
Distance Functions ◽  
Independence Axiom ◽  
Preference Order ◽  
Static Properties ◽  
Preference Theory ◽  
Preference Structures ◽  
Consumer Problem ◽  
Revealed Preference Theory ◽  
Special Case

The theory of a rational consumer characterized by an incomplete preference order is developed using distance functions and the zero-minimum (zero-maximum) principle. The essential comparative-static properties of the associated quantity-dependent and price-dependent demand structures are characterized. Utility functions are derived from distance functions for preference structures satisfying a complete ordering assumption. The Marshall-Hicks demand theory that is based on a utility-maximizing consumer is derived as a special case of rational consumer behavior. The Hicks-Allen demand decomposition is reviewed and a conjugate profit function approach to utility maximization is developed and used to discuss Revealed Preference Theory. The Chapter closes by examining the structural consequences of the independence axiom for d(x,y;g).

Revealed preference, belief, and game theory

2000 ◽  
Vol 16 (1) ◽  
pp. 99-115 ◽  
Author(s):  
Daniel M. Hausman
Keyword(s):  
Game Theory ◽  
Revealed Preference ◽  
Preference Theory ◽  
Revealed Preference Theory ◽  
Subjective States

The notion of ‘revealed preference’ is unclear and should be abandoned. Defenders of the theory of revealed preference have misinterpreted legitimate concerns about the testability of economics as the demand that economists eschew reference to (unobservable) subjective states. As attempts to apply revealed-preference theory to game theory illustrate with particular vividness, this demand is mistaken.

scholarly journals Understanding Attitudes towards Proenvironmental Travel: An Empirical Study from Tangshan City in China

2014 ◽  
Vol 2014 ◽  
pp. 1-7 ◽  
Author(s):  
Xiaoping Fang ◽  
Yajing Xu ◽  
Weiya Chen
Keyword(s):  
Travel Behavior ◽  
Mode Choice ◽  
Revealed Preference ◽  
Individual Characteristics ◽  
Survey Method ◽  
Model Parameters ◽  
Travel Mode ◽  
Preference Theory ◽  
Travel Mode Choice ◽  
Revealed Preference Theory

Understanding people’s attitudes towards proenvironmental travel will help to encourage people to adopt proenvironmental travel behavior. Revealed preference theory assumes that the consumption preference of consumers can be revealed by their consumption behavior. In order to investigate the influences on citizens’ travel decision and analyze the difficulties of promoting proenvironmental travel behavior in medium-sized cities in China, based on revealed preference theory, this paper uses the RP survey method and disaggregate model to analyze how individual characteristics, situational factors, and trip features influence the travel mode choice. The field investigation was conducted in Tangshan City to obtain the RP data. An MNL model was built to deal with the travel mode choice. SPSS software was used to calibrate the model parameters. The goodness-of-fit tests and the predicted outcome demonstrate the validation of the parameter setting. The results show that gender, occupation, trip purpose, and distance have an obvious influence on the travel mode choice. In particular, the male gender, high income, and business travel show a high correlation with carbon-intensive travel, while the female gender and a medium income scored higher in terms of proenvironmental travel modes, such as walking, cycling, and public transport.

scholarly journals New Developments in Revealed Preference Theory: Decisions Under Risk, Uncertainty, and Intertemporal Choice

2020 ◽  
Vol 12 (1) ◽  
pp. 299-316 ◽  
Author(s):  
Federico Echenique
Keyword(s):  
Expected Utility ◽  
Intertemporal Choice ◽  
Revealed Preference ◽  
New Developments ◽  
Preference Theory ◽  
Decisions Under Risk ◽  
Discounted Utility ◽  
Recent Developments ◽  
Functional Forms ◽  
Revealed Preference Theory

This article reviews recent developments in revealed preference theory. It discusses the testable implications of theories of choice that are germane to specific economic environments. The focus is on expected utility in risky environments, subjected expected utility and maxmin expected utility in the presence of uncertainty, and exponentially discounted utility for intertemporal choice. The testable implications of these theories for data on choice from classical linear budget sets are described and shown to follow a common thread. The theories all imply an inverse relation between prices and quantities, with different qualifications depending on the functional forms in the theory under consideration.

Sign in / Sign up

Export Citation Format

Share Document