Beyond revealed preference
Subtitle: choice theoretic foundations for behavioral welfare economics
By: B. Douglas Bernheim, Antonio Rangel.
Contributors: Rangel, Antonio.; National Bureau of Economic Research.
Series: NBER working paper series -- working paper 13737; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 13737.
Publisher: National Bureau of Economic Research
Published: 2008
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "We propose a broad generalization of standard choice-theoretic welfare economics that encompasses a wide variety of non-standard behavioral models.  Our approach exploits the coherent aspects of choice which those positive models typically attempt to capture.  It replaces the standard revealed preference relation with an unambiguous choice relation: roughly, x is (strictly) unambiguously chosen over y (written xP*y) if y is never chosen when x is available.  Under weak assumptions, P* is acyclic and therefore suitable for welfare analysis; it is also the most discerning welfare criterion that never overrules choice.  The resulting framework generates natural counterparts for the standard tools of applied welfare economics, and is easily applied in the context of specific behavioral theories, with novel implications.  Though not universally discerning, it lends itself to principled refinements"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 6/11/2008.

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