Journal Article

The Revealed Preference Theory of Changing Tastes

Faruk Gul and Wolfgang Pesendorfer

in The Review of Economic Studies

Published on behalf of Review of Economic Studies Ltd

Volume 72, issue 2, pages 429-448
Published in print April 2005 | ISSN: 0034-6527
Published online April 2005 | e-ISSN: 1467-937X | DOI: http://dx.doi.org/10.1111/j.1467-937X.2005.00338.x
The Revealed Preference Theory of Changing Tastes

More Like This

Show all results sharing these subjects:

  • Household Behaviour and Family Economics
  • Microeconomics

GO

Show Summary Details

Preview

We analyse preferences over finite decision problems in order to model decision-makers with “changing tastes”. we provide conditions on these preferences that identify the Strotz model of consistent planning. building on an example given by Peleg and Yaari (1973), we show that for problems with infinitely many choices, Strotz's representation of preferences may not be well defined. For that case, we propose a well-defined approximation which is empirically indistinguishable from the Strotz preference that is being approximated.

Keywords: D01; D11

Journal Article.  10667 words.  Illustrated.

Subjects: Household Behaviour and Family Economics ; Microeconomics

Full text: subscription required

How to subscribe Recommend to my Librarian

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.