Recovering Preferences From Finite Data

ECONOMETRICA(2021)

Cited 7|Views51
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Abstract
We study preferences estimated from finite choice experiments and provide sufficient conditions for convergence to a unique underlying "true" preference. Our conditions are weak and, therefore, valid in a wide range of economic environments. We develop applications to expected utility theory, choice over consumption bundles, and menu choice. Our framework unifies the revealed preference tradition with models that allow for errors.
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Key words
Revealed preference, choice data, consistency
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