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I'm a Great Northwesterner that is now loving life in the Midwest. I am a world class napper. I'm very bossy. I clearly love a good glass of Scotch. I wear aprons every chance I get.

Saturday, January 14, 2006

My new favorite economic theory:

Revealed Preference: the preferences (purposes, subjective benefits) of absolutely rational people are revealed by the choices they make.



Lately I've been fascinated by this concept. Especially when people say things like "I really want to go to Disneyland" - to which I think...then why don't you go. If you REALLY wanted to go...you'd be figuring out ways to be there, right?

surprisingly I've focused this theory more on myself than on others (although I'm more actively listening for what people say versus what their revealed preference (actions) tells me.) I'm spending a lot of time thinking about what I really want and to what I'm just giving the lip service. Or what is stopping me from doing what I want? The law, perhaps. Or potential guilt. Or just laziness.

2 comments:

Deeder V said...

Do people's actions reveal preferences? An interesting idea.

breakfast beaver said...

Damn straight.