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Recovering Preferences from Finite Data

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  • Christopher P. Chambers
  • Federico Echenique
  • Nicolas Lambert

Abstract

We study preferences estimated from finite choice experiments and provide sufficient conditions for convergence to a unique underlying "true" preference. Our conditions are weak, and therefore valid in a wide range of economic environments. We develop applications to expected utility theory, choice over consumption bundles, menu choice and intertemporal consumption. Our framework unifies the revealed preference tradition with models that allow for errors.

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  • Christopher P. Chambers & Federico Echenique & Nicolas Lambert, 2019. "Recovering Preferences from Finite Data," Papers 1909.05457, arXiv.org, revised Oct 2020.
    • Handle: RePEc:arx:papers:1909.05457
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    Cited by:

    1. Felix Kubler & Raghav Malhotra & Herakles Polemarchakis, 2021. "Exact inference from finite market data," Papers 2107.07294, arXiv.org.
    2. Kubler, Felix & Malhotra, Raghav & Polemarchakis, Herakles, 2020. "Identification of preferences, demand and equilibrium with finite data," CRETA Online Discussion Paper Series 60, Centre for Research in Economic Theory and its Applications CRETA.
    3. Pablo Schenone, 2020. "Final Topology for Preference Spaces," Papers 2004.02357, arXiv.org, revised Mar 2024.
    4. Pawel Dziewulski, 2021. "A comprehensive revealed preference approach to approximate utility maximisation," Working Paper Series 0621, Department of Economics, University of Sussex Business School.

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