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New developments in revealed preference theory: decisions under risk, uncertainty, and intertemporal choice

Federico Echenique

arXiv 20 Aug 2019 · Theoretical Economics

arXiv:1908.07561 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This survey reviews recent developments in revealed preference theory. It discusses the testable implications of theories of choice that are germane to specific economic environments. The focus is on expected utility in risky environments; subjected expected utility and maxmin expected utility in the presence of uncertainty; and exponentially discounted utility for intertemporal choice. The testable implications of these theories for data on choice from classical linear budget sets are described, and shown to follow a common thread. The theories all imply an inverse relation between prices and quantities, with different qualifications depending on the functional forms in the theory under consideration.

Citation extraction

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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Chambers CP, Echenique F (2016) Revealed preference theory, vol. 561.00053100%
2Browning M (1989) A nonparametric test of the life-cycle rational expectations hypothesis0.73732100%
3Varian HR (1982) The nonparametric approach to demand analysis0.73732100%
4Polisson M, Quah J, Renou L (2017) Revealed preferences over risk and uncertainty0.69351100%
5Afriat SN (1967) The construction of utility functions from expenditure data0.64422100%
6Diewert WE (1973) Afriat and revealed preference theory0.64422100%
7Nishimura H, Ok EA, Quah J (2017) A comprehensive approach to revealed preference theory0.64422100%
8Quah J (2014) A test for weakly separable preferences0.64422100%
9Chambers CP, Liu C, Martinez SK (2016) b0.58531100%
10Chambers CP, Echenique F, Saito K (2016) a0.58531100%

Showing the top 10 of 58 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1A Frequentist Approach to Revealed Preference Analysis0.40511