Tsinghua Micro Ch7 显现性偏好 《微观经济学》.ppt

Chapter Seven Revealed Preference 显现性偏好 What Is the Question of the Chapter? Suppose we observe a collection of a consumer’s choices, can we discover his/her preference? Is this possible at all? If so, under what conditions is this possible? (This is the reverse question of finding the optimal choice) Digression: Science vs. Engineering (对比科学家思维与工程师思维） 找问题与解问题的不同 要对问题提问题 务虚与务实的不同 解释世界与改造世界的不同 旁观者与参与者的不同 Maintained Assumptions on Preferences Preferences do not change while the choice data are gathered. are strictly convex. are monotonic. Assumptions on Preferences Direct Preference Revelation Suppose that the bundle x* is chosen when the bundle y is affordable. Then x* is revealed directly as preferred to y (otherwise y would have been chosen). Direct Preference Revelation Direct Preference Revelation That x is revealed directly as preferred to y will be written as  x y. Indirect Preference Revelation Suppose x is revealed directly preferred to y, and y is revealed directly preferred to z. Then, we call x is revealed indirectly as preferred to z. Write this as x zso x y and y z x z. Indirect Preference Revelation Two Axioms of Revealed Preference To apply revealed preference analysis, choices must satisfy two criteria -- the Weak and the Strong Axioms of Revealed Preference. The Weak Axiom of Revealed Preference (WARP) If the bundle x is revealed directly as preferred to the bundle y then it is never the case that y is revealed directly as preferred to x; i.e. x y not (y x). The Weak Axiom of Revealed Preference (WARP) Choice data which violate the WARP are inconsistent with economic rationality. The WARP is a necessary condition for applying economic rationality to explain observed choices. The Weak Axiom of Revealed Preference (WARP) What choice data violate the WARP? The Weak Axiom of Revealed Preferen