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Revealed Preference Theory( A concise explanation- Pindyck and Rubinfeld)
Автор: Economique
Загружено: 2021-03-15
Просмотров: 2499
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In Revealed Preference Theory, we are trying to determine the preferences of the consumer based on his choice. If a consumer chooses one market basket over another, and if the chosen market basket is more expensive than the alternative, then the consumer must prefer the chosen market basket.
The revealed preference approach is valuable is a means of checking whether individual choices are consistent with the assumptions of consumer theory. And also, this analysis can help us understand the implications of choices that consumers must make in particular circumstances.
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