scholarly journals Summarized distributions of mass: a statistical approach to consumers’ consumption spaces

2021 ◽  
pp. 1-13
Author(s):  
Pierpaolo Angelini ◽  
Fabrizio Maturo

This paper focuses on logical aspects of choices being made by the consumer under conditions of uncertainty or certainty. Such logical aspects are found out to be the same. Choices being made by the consumer that should maximize her subjective utility are decisions studied by revealed preference theory. A finite number of possible alternatives is considered. They are mutually exclusive propositions identifying all quantitative states of nature of a consumption plan. Each proposition of it is expressed by a real number. This research work distinguishes it from its temporary truth value depending on the state of information and knowledge of the consumer. Since each point of the consumption space of the consumer belongs to a two-dimensional convex set, this article focuses on conjoint distributions of mass. Indeed, the consumption space of the consumer is generated by all coherent summaries of a conjoint distribution of mass. Each point of her consumption space is connected with a weighted average of states of nature of two consumption plans jointly studied. They give rise to a conjoint distribution of mass. The consumer chooses a point of a two-dimensional convex set representing that bundle of goods actually demanded by her inside of her consumption space. This paper innovatively shows that it is nothing but a bilinear and disaggregate measure. It is decomposed into two real numbers, where each real number is a linear measure. In this paper, different measures are obtained. They can be disaggregate or aggregate measures, where the latter are independent of the notion of ordered pair of consumption plans.

2000 ◽  
Vol 16 (1) ◽  
pp. 99-115 ◽  
Author(s):  
Daniel M. Hausman

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.


2014 ◽  
Vol 2014 ◽  
pp. 1-7 ◽  
Author(s):  
Xiaoping Fang ◽  
Yajing Xu ◽  
Weiya Chen

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.


2020 ◽  
Vol 12 (1) ◽  
pp. 299-316 ◽  
Author(s):  
Federico Echenique

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.


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