Revealed stochastic preference: a synthesis

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Publication:2486957





Revealed preference theory analyses how from (hypothetical) observed individual demand (or choice) one can recover the individual's preference whose maximization leads to this demand or choice. With stochastic revealed preference, rather than considering hypothetical observed individual demand, one considers the distributions of observed choices in a population. This paper synthesizes the solutions to this problem in the case of a finite set of alternatives and in infinite universe. General results are obtained in abstract settings. As corollaries, the author shows that these results are applicable to the classical economic consumer revealed preference problem.




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