Question

what does revealedprefference theroy based on

Answer 1

Answer:

Key Takeaways. Revealed preference, a theory offered by American economist Paul Anthony Samuelson in 1938, states that consumer behavior, if their income and the item's price are held constant, is the best indicator of their preferences. Revealed preference theory works on the assumption that consumers are rational.

Answer 2

Answer:

Key Takeaways. Revealed preference, a theory offered by American economist Paul Anthony Samuelson in 1938, states that consumer behavior, if their income and the item's price are held constant, is the best indicator of their preferences. Revealed preference theory works on the assumption that consumers are rational.