Weak axiom of revealed preference

 

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Weak axiom of revealed preference

The assumption that a consumer who reveals strict preference for one bundle of goods over another will not, in other circumstances, reveal their preference for the second over the first. That is, if qi, qj are the vectors of goods purchased at prices pi, pj respectively, then piqi>piqj Þ pjqi>pjqj. Used in proving correlation results.



Similar Matches

Participating preference shares

Participating preference shares

Preference shares which, in addition to paying a specified dividend, entitle preference shareholders to participate in receiving an additional dividend if ordinary shareholders are paid a dividend above a stated amount.


Stepped preference shares

Stepped preference shares

Preference shares with dividends which increase annually by a specified amount and with a predetermined capital return.


Preference for variety

Preference for variety

The increased utility that people experience when they have access to a larger number of differentiated product varieties. In reality this may reflect their ability to find products more closely suited to their own particular needs, but as modeled in the Dixit-Stiglitz utility function, they are better off consuming small quantities of each of a larger number of products.


Preferences

Preferences

1. In trade policy, this refers to special advantages, such as lower-than-MFN tariffs, accorded to another country's exports, usually in order to promote that country's development. See GSP. 2. In trade theory, this refers to the attitudes of consumers toward different goods, as represented by a utility function. Some propositions in trade theory use the assumption of identical and/or homothetic preferences.


Loan Preference Principle

Loan Preference Principle

The theory that a covered loan is less expensive when its cost is calculated in one currency, it will also be less expensive in all other currencies.


Further Suggestions

Generalized System of Preferences
Identical preferences
Community preferences
Preference stock
Liquidity preference hypothesis
redeemable preference shares
Revealed preference
Tax preference item
cumulative preference shares
Involuntary liquidation preference
Tariff preference
Preference share
preference shares
Homothetic preferences


 
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