| Revision as of 14:46, 8 January 2013 editSPECIFICO (talk | contribs)Extended confirmed users35,511 edits Addressed tag: Deleted non-encyclopedic content not referencing Rothbard's theory. un-tagged. If you believe relevant, content must be cited in an encyclopedic exposition of this theory. Mere recitation is anecdotal, WP:OR and WP:SYNTH Use talk.← Previous edit | Latest revision as of 09:17, 21 October 2013 edit undo114.49.10.54 (talk) redirect to Revealed preference | ||
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| {{expert-subject|1=Economics|date=November 2012}} | |||
| {{mergeto|Revealed preference|discuss=Talk:Revealed preference#Demonstrated preference|date=December 2012}} | |||
| '''Demonstrated preference''' is a concept in economics that states that people's spending (time/money) decisions ]. Unlike ], it does not assume that people's preferences are constant or fixed over time. | |||
| ==Statement of the theory== | |||
| :The theory of demonstrated preference was proposed by economist ] It states that an individual's choice demonstrates his or her preferences; that is, such preferences may be inferred from the choice entailed by the observed action. Thus, if a person chooses to spend an hour at a concert rather than a movie, one may infer that the former was preferred, or ranked higher on the individual's value scale. Similarly, if a person spends five dollars on a shirt we deduce that he preferred purchasing the shirt to any other uses that person could have found for the money. This concept of preference, rooted in real choices, forms the keystone of the logical structure of economic analysis, and particularly of utility and welfare analysis. <ref>Murray Rothbard, Toward a Reconstruction of Utility and Welfare Economics. </ref> | |||
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Latest revision as of 09:17, 21 October 2013
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