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:
“It is at the same time by poetry and through poetry, by and through music, that the soul glimpses the splendors found behind the tomb; and when an exquisite poem brings tears to one’s eyes, these tears are not the sign of excessive pleasure, they are rather witness to an irritated melancholy, to a condition of nerves, to a nature exiled to imperfection and which would like to seize immediately, on this very earth, a revealed paradise.”
—Charles Baudelaire (1821–1867)
“He that has his chains knocked off, and the prison doors set open to him, is perfectly at liberty, because he may either go or stay, as he best likes; though his preference be determined to stay, by the darkness of the night, or illness of the weather, or want of other lodging. He ceases not to be free, though the desire of some convenience to be had there absolutely determines his preference, and makes him stay in his prison.”
—John Locke (1632–1704)