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:
“... we engage in politics because we don’t know anything. This is clearly revealed in the way we go about it. Our parties exist from a fear of theory. The voter fears that one idea can always be contradicted by another. Therefore the parties reciprocally defend themselves against the few old ideas they have inherited. They don’t live from what they promise, but from frustrating the promises of others. This is their silent community of interests.”
—Robert Musil (1880–1942)
“It is impossible for us to love anything without some respect to ourselves; and we only consult our own inclination and our own pleasure when we prefer our friends to ourselves. And yet this preference is the only thing that can render friendship perfect and sincere.”
—François, Duc De La Rochefoucauld (1613–1680)