Direct preference revelation Suppose that the bundle x"is chosen when the bundle y is affordable Then x is revealed directly as preferred to y(otherwise would have been chosen) x直接显示偏好于
Direct Preference Revelation Suppose that the bundle x* is chosen when the bundle y is affordable. Then x* is revealed directly as preferred to y (otherwise y would have been chosen). x*直接显示偏好于
Direct preference revelation The chosen bundle x is revealed directly as preferred to the bundles y and z. X y X1
Direct Preference Revelation x2 x1 x * y The chosen bundle x* is revealed directly as preferred to the bundles y and z. z
Direct preference revelation That x is revealed directly as preferred to y will be written as x≥y
Direct Preference Revelation That x is revealed directly as preferred to y will be written as x y. D p
Indirect preference revelation Suppose x is revealed directly preferred to y, and y is revealed directly preferred to z. Then, by transitivity, x is revealed indirectly as preferred to z. Write this as so xy and y 6
Indirect Preference Revelation Suppose x is revealed directly preferred to y, and y is revealed directly preferred to z. Then, by transitivity, x is revealed indirectly as preferred to z. Write this as x z so x y and y z x z. D p D p I p I p