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Paul Samuelson and Revealed Preference Theory

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  • D. Wade Hands

Abstract

Revealed preference theory is not a specific theory; it is a broad programmatic framework for analyzing choice behavior. Within this broad framework there are a number of different revealed preference theories (different versions of the program)—they all share common features, but there are also sharp differences. The diversity of revealed preference theory is not well understood, and one purpose of this article is to improve our historical understanding of the field by examining this historical diversity. This history is valuable for its own sake, but also because it is relevant to recent debates about the methodological foundations of rational choice theory among experimental psychologists, behavioral economists, neuroeconomists, and others. The second purpose of this article is to use material from the Paul Samuelson archives to help us understand how Samuelson, the originator of revealed preference theory, viewed his contribution to the program and how he evaluated the different versions of revealed preference theory. The article will examine Das Paul Samuelson Problem: the question of whether Paul Samuelson changed his mind about the foundations (the nature, significance, and purpose) of revealed preference theory over time.

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  • D. Wade Hands, 2014. "Paul Samuelson and Revealed Preference Theory," History of Political Economy, Duke University Press, vol. 46(1), pages 85-116, Spring.
    • Handle: RePEc:hop:hopeec:v:46:y:2014:i:1:p:85-116
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    2. H. Spencer Banzhaf & Yaqin Liu & Martin Smith & Frank Asche, 2019. "Non-Parametric Tests of the Tragedy of the Commons," NBER Working Papers 26398, National Bureau of Economic Research, Inc.
    3. Wang, Jian & Iversen, Tor & Hennig-Schmidt, Heike & Godager, Geir, 2020. "Are patient-regarding preferences stable? Evidence from a laboratory experiment with physicians and medical students from different countries," European Economic Review, Elsevier, vol. 125(C).
    4. Selene Ivette Ornelas Herrera & Yasmina Baba & Zein Kallas & Erik Meers & Evi Michels & Zoltán Hajdu & Ana Marija Spicnagel, 2025. "The role of environmental attitudes and consumption patterns in consumers’ preferences for sustainable food from circular farming system: a six EU case studies," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 13(1), pages 1-27, December.
    5. Zouboulakis, Michel S., 2023. "A.G. Papandreou’S Academic Economic Thought 1943-1963," SocArXiv 3nqfb, Center for Open Science.
    6. repec:osf:socarx:3nqfb_v1 is not listed on IDEAS
    7. Banzhaf, H. Spencer & Liu, Yaqin & Smith, Martin D. & Asche, Frank, 2024. "Non-parametric tests of behavior in the commons," Journal of Economic Behavior & Organization, Elsevier, vol. 224(C), pages 521-536.

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