Jump to ContentJump to Main Navigation
The Foundations of Positive and Normative EconomicsA Hand Book$
Users without a subscription are not able to see the full content.

Andrew Caplin and Andrew Schotter

Print publication date: 2008

Print ISBN-13: 9780195328318

Published to Oxford Scholarship Online: October 2011

DOI: 10.1093/acprof:oso/9780195328318.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (www.oxfordscholarship.com). (c) Copyright Oxford University Press, 2019. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a monograph in OSO for personal use (for details see www.oxfordscholarship.com/page/privacy-policy).date: 17 June 2019

Revealed Mistakes and Revealed Preferences

Revealed Mistakes and Revealed Preferences

Chapter:
(p.193) Chapter 8 Revealed Mistakes and Revealed Preferences
Source:
The Foundations of Positive and Normative Economics
Author(s):

BOTOND KöSZEGI

MATTHEW RABIN

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780195328318.003.0008

Because some are not able to assess all the possible options for making a decision of an action, people often defy one of the most fundamental and traditional concepts in economics by going for an option that they would not have chosen had they been able to push through with thorough evaluation. Because of this, it would be useful to first analyze the common mistakes made until they become uncommon and until we are able to integrate what we have learned from these mistakes into creating models, policy prescriptions, and evaluations. Although certain fears may arise from such a measure on both the positive and normative side through mistakes becoming a free parameter and because of how the revealed-preference approach cannot be used, this chapter suggests other measures to deal with such concerns.

Keywords:   decision making, mistakes, free parameter, revealed-preference approach, evaluation

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .