This paper points out that consumption preference and pure subjective preference are not the same concept. The price system of commodity gives the social utility value of commodity and consumers only have two options for this utility value: accept or not accept. Consumption behavior is the...

The joint implications for welfare measurement of three recent literatures are considered: the behavioral welfare economics literature, the structural versus reduced form debate in econometrics, and the use of sufficient statistics for characterizing behavior. The first permits the revealed...

We offer a new, succinct proof that the money metric utility is concave for any preference relation representable by a concave function if and only if the indirect utility is affine in wealth. The proof exploits the existence of a least concave representation established in Debreu (1976), a...