Concept information
Preferred term
revealed preference
Definition
- Revealed preference theory holds that consumers' preferences can be revealed by what they purchase under different circumstances, particularly under different income and price circumstances. The concept argues that if a consumer purchases a specific bundle of goods, then that bundle is “revealed preferred,” given constant income and prices, to any other bundle that the consumer could afford. [Source: Encyclopedia of Business Ethics and Society; Revealed Preference]
Broader concept
Belongs to group
URI
https://concepts.sagepub.com/social-science/concept/revealed_preference
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