revealed preference
The concept of 'revealed preference' was introduced by American economist Paul A. Samuelson in 1938 to infer consumer preferences from their purchasing behaviors.
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Definition
C1Economics
(technical, academic)A theory that infers what consumers prefer based on their actual purchasing decisions rather than their stated preferences.
Example
- By examining revealed preference, economists can determine which products consumers favor without conducting surveys.
- Revealed preference helps to understand consumer behavior by analyzing the choices they make in real-world situations.