Tag Archives | Revealed Preference Theory

Revealed Preference Theory | Commodities | Utility Function | Economics

The theory of revealed preference allows us to use information about consumer choices to inter how the consumer must rank bundles if he is maximizing utility with budget constraints. Alternatively, the revealed preference model explains that how the consumer spends his income with given prices of different commodities. The change in price allows consumer to buy of more or less [...]

By Maity M|2017-06-08T11:57:24+05:30June 8, 2017|Revealed Preference Theory|Comments Off

Revealed Preference Theory (RPT) (With Diagram)

In this article we will discuss about the Revealed Preference Theory (RPT) put forth by prof. Samuelson. The Concept of Revealed Preference: Prof. Samuelson has invented an alternative approach to the theory of consumer behaviour which, in principle, does not require the consumer to supply any information about himself. If his tastes do not change, this theory, known as the [...]

By Vanshika Ghosh|2016-09-17T15:59:03+05:30September 17, 2016|Consumers Behavior|Comments Off