revealed preference
[rɪˈvild ˈprɛfərəns]
nounpl: revealed preferences
preferência revelada
1. An economic principle stating that consumer preferences can be inferred from their actual purchasing behavior rather than from what they claim to prefer
The economist studied revealed preference by analyzing which products consumers actually bought rather than asking what they said they wanted.
O economista estudou a preferência revelada analisando quais produtos os consumidores realmente compraram em vez de perguntar o que eles diziam que queriam.
2. The assumption that choices made by individuals reflect their true preferences, as demonstrated through their actions
Through revealed preference theory, we can understand that if a customer consistently chooses brand A over brand B, they prefer brand A.
Através da teoria da preferência revelada, podemos entender que se um cliente consistentemente escolhe a marca A em vez da marca B, ele prefere a marca A.
Revealed preference is a cornerstone concept in microeconomic theory, developed by economist Paul Samuelson in the 1930s. It is fundamental to understanding consumer economics in both American and Brazilian business education. The concept challenges the reliability of stated preferences and focuses on observable market behavior, making it particularly valuable in market research and policy analysis.
Related Idioms & Phrases
actions speak louder than words (similar concept)
put your money where your mouth is (related behavioral principle)
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