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Revealed preference and identification

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  • Gorno, Leandro

Abstract

This paper studies preference identification in a general framework that allows for partial observability of optimal choices: Decision makers select some optimal alternatives, but not necessarily all of them. While partial observability is a methodologically appealing assumption for empirical applications, it makes recovering preferences much harder. The main result provides abstract conditions on classes of preferences and decision problems ensuring identification. The result is applied to several standard settings demonstrating the power of the method.

Suggested Citation

  • Gorno, Leandro, 2019. "Revealed preference and identification," Journal of Economic Theory, Elsevier, vol. 183(C), pages 698-739.
    • Handle: RePEc:eee:jetheo:v:183:y:2019:i:c:p:698-739
    DOI: 10.1016/j.jet.2019.07.003
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    References listed on IDEAS

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    Cited by:

    1. Christopher P. Chambers & Federico Echenique & Nicolas S. Lambert, 2021. "Recovering Preferences From Finite Data," Econometrica, Econometric Society, vol. 89(4), pages 1633-1664, July.
    2. Christopher P. Chambers & Federico Echenique & Nicolas S. Lambert, 2018. "Preference Identification," Papers 1807.11585, arXiv.org.

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    More about this item

    Keywords

    Revealed preference; Identification; Recoverability; Indifference; Continuity; Uniqueness;
    All these keywords.

    JEL classification:

    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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