Revealed Preference, Afriat's Theorem, and Falsifiability: A Review Essay on Revealed Preference Theory by Christopher P. Chambers and Federico Echenique

2017 ◽  
Author(s):  
D. Wade Hands
Keyword(s):  
Review Essay ◽  
Revealed Preference ◽  
Preference Theory ◽  
Afriat’S Theorem ◽  
Revealed Preference Theory

scholarly journals A Comprehensive Approach to Revealed Preference Theory

2017 ◽  
Vol 107 (4) ◽  
pp. 1239-1263 ◽  
Author(s):  
Hiroki Nishimura ◽  
Efe A. Ok ◽  
John K.-H. Quah
Keyword(s):  
Euclidean Space ◽  
Utility Function ◽  
Revealed Preference ◽  
Consumer Theory ◽  
Choice Data ◽  
Preference Theory ◽  
Positive Orthant ◽  
Intertemporal Consumption ◽  
Afriat’S Theorem ◽  
Revealed Preference Theory

We develop a version of Afriat's theorem that is applicable in a variety of choice environments beyond the setting of classical consumer theory. This allows us to devise tests for rationalizability in environments where the set of alternatives is not the positive orthant of a Euclidean space and where the rationalizing utility function is required to satisfy properties appropriate to that environment. We show that our results are applicable, amongst others, to choice data on lotteries, contingent consumption, and intertemporal consumption. (JEL D11, D81)

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.

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