Revealed Preference
Revealed preference theory addresses the problem of how to observe ordinal preference relations in the real world. The challenge of revealed preference theory lies in part in determining what goods bundles were foregone, on the basis of the being less liked, when individuals are observed choosing particular bundles of goods.
Read more about this topic: Ordinal Utility
Famous quotes containing the words revealed and/or preference:
“The television screen, so unlike the movie screen, sharply reduced human beings, revealed them as small, trivial, flat, in two banal dimensions, drained of color. Wasn’t there something reassuring about it!—that human beings were in fact merely images of a kind registered in one another’s eyes and brains, phenomena composed of microscopic flickering dots like atoms. They were atoms—nothing more. A quick switch of the dial and they disappeared and who could lament the loss?”
—Joyce Carol Oates (b. 1938)
“Among all the world’s races, some obscure Bedouin tribes possibly apart, Americans are the most prone to misinformation. This is not the consequence of any special preference for mendacity, although at the higher levels of their public administration that tendency is impressive. It is rather that so much of what they themselves believe is wrong.”
—John Kenneth Galbraith (b. 1908)