Chapter seven Revealled Preference 显现性偏好
Chapter Seven Revealed Preference 显现性偏好
What Is the Question of the Chapter? Suppose we observe a collection of a consumers choices, can we discover his/her preference? Is this possible at all? If so, under what conditions is this possible? (This is the reverse question of finding the optimal choice)
What Is the Question of the Chapter? Suppose we observe a collection of a consumer’s choices, can we discover his/her preference? Is this possible at all? If so, under what conditions is this possible? (This is the reverse question of finding the optimal choice)
Digression: Science VS Engineering (对比科学家思维与工程师思维) 找问题与解问题的不同 要对问题提问题 务虚与务实的不同 解释世界与改造世界的不同 旁观者与参与者的不同
Digression: Science vs. Engineering (对比科学家思维与工程师思维） 找问题与解问题的不同 –要对问题提问题 务虚与务实的不同 解释世界与改造世界的不同 –旁观者与参与者的不同
Maintained Assumptions on Preferences Preferences do not change while the choice data are gathered are strictly convex are monotonic
Maintained Assumptions on Preferences Preferences –do not change while the choice data are gathered. – are strictly convex. – are monotonic
Assumptions on Preferences If preferences are convex and monotonic(i.e well-behaved) then the most preferred affordable bundle is unique X1
Assumptions on Preferences x2 x1 x1 * x2 * If preferences are convex and monotonic (i.e. well-behaved) then the most preferred affordable bundle is unique