Evidence suggests that consumers do not perfectly optimize, contrary to a critical assumption of classical consumer theory. We propose a model in which consumer types can vary in both their preferences and their choice behavior. Given data on demand and the distribution of prices, we identify...

We estimate demand models with revealed preference (RP) site selection and stated preference (SP) discrete choice experiment marine recreational fishing data. We combine RP data from the Marine Recreational Information Program (MRIP) creel survey with SP survey data from 2003/04. RP and SP data...

Uskali Mäki has long argued that realist interpretations of economics do not face a challenge regarding the ontological status of non-observable theoretical entities. He argues that in economics, unlike physics, the theoretical entities are "commonsensibles" – entities familiar from our...

This paper examines methodological issues raised by revealed preference theory in economics: particularly contemporary revealed preference theory. The paper has three goals. First, to make the case that revealed preference theory is a broad research program in choice theory – not a single...

Behavioural welfare economics provides tools to elicit welfare preferences when individuals use nonstandard behavioural models. Current proposals either require assumptions on the models or elicit preferences that become coarser and coarser as the dataset grows. We propose an informational...

People consume not only physical goods but also social interaction, and consumer choices depend on both intrinsic motivations (preferences for consumption) and extrinsic motivations (how choices impact social interactions). In this paper, we study how social identity, preference, and utility...

This research examines the effects of socio-psychological factors on consumers' payment behaviour. Based on insights from the socio-psychological and payment literature we build a theoretical model of payment behaviour. We test this model empirically by focusing on the choice between cash and...

The theory of revealed preferences offers an elegant way to test the neoclassical model of utility maximization subject to a linear budget constraint. In many settings, however, the set of available consumption bundles does not take the form of a linear budget set. In this paper, we adjust the...

This paper uses the 2016 book by Chambers and Echenique as the focal point for a general discussion of the revealed preference literature: starting with Samuelson (1938) but with a particular emphasis on its relationship to general equilibrium theory and recent empirical applications. The main...

Recent advances in the collective model literature suggest ways to estimate the complete allocation of resources within households, using assignable goods and assuming adult preference similarity across demographic groups (or across spouses). While it makes welfare analysis at the individual...