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Empirical Revealed Preference

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  • Ian Crawford

    () (Institute for Fiscal Studies, London WC1E 7AE, United Kingdom
    Department of Economics, University of Oxford, Oxford OX1 3UQ, United Kingdom)

  • Bram De Rock

    () (European Center for Advanced Research in Economics and Statistics, Solvay Brussels School of Economics and Management, and Université Libre de Bruxelles, 1050 Brussels, Belgium)

Abstract

This article aims to provide an introduction to empirical revealed preference (RP) and an overview of the current state of the field. We hope to give a sense of how RP methods work and the types of questions they can address and to assess the strengths and drawbacks of the approach. After briefly recapping the basics of RP theory, we review and critically assess the literature in two main areas representing the principal fields in which recent research has made significant advances: broadening the scope of RP methods and dealing with empirical issues related to bringing RP to the data. We conclude with a discussion of some future directions.

Suggested Citation

  • Ian Crawford & Bram De Rock, 2014. "Empirical Revealed Preference," Annual Review of Economics, Annual Reviews, vol. 6(1), pages 503-524, August.
    • Handle: RePEc:anr:reveco:v:6:y:2014:p:503-524
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    File URL: http://www.annualreviews.org/doi/abs/10.1146/annurev-economics-080213-041238
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    Citations

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    Cited by:

    1. Kircher, Philipp & Marzilli Ericson, Keith & Spinnewijn, Johannes & Starc, Amanda, 2015. "Inferring Risk Perceptions and Preferences using Choice from Insurance Menus: Theory and Evidence," CEPR Discussion Papers 10981, C.E.P.R. Discussion Papers.
    2. Thomas Demuynck, 2020. "Markov Chain Monte Carlo Procedure to Generate Revealed Preference Consistent Datasets," Working Papers ECARES 2020-33, ULB -- Universite Libre de Bruxelles.
    3. Federico Echenique, 2019. "New developments in revealed preference theory: decisions under risk, uncertainty, and intertemporal choice," Papers 1908.07561, arXiv.org, revised Dec 2019.
    4. Andrew Ellis & David J Freeman, 2020. "Revealing Choice Bracketing," Papers 2006.14869, arXiv.org, revised Sep 2020.
    5. Müller, Daniel, 2019. "The anatomy of distributional preferences with group identity," Journal of Economic Behavior & Organization, Elsevier, vol. 166(C), pages 785-807.
    6. Daniel Müller, 2017. "The anatomy of distributional preferences with group identity," Working Papers 2017-02, Faculty of Economics and Statistics, University of Innsbruck, revised Mar 2017.
    7. Steven D. Silver, 2016. "A QUAIDS Model of Need-Based Structure in U.S. Personal Consumption 2006–2012," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 44(3), pages 303-323, September.
    8. Smeulders, Bart & Crama, Yves & Spieksma, Frits C.R., 2019. "Revealed preference theory: An algorithmic outlook," European Journal of Operational Research, Elsevier, vol. 272(3), pages 803-815.

    More about this item

    Keywords

    consumption behavior; revealed preferences; nonparametric analysis;

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

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