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Recovering Preferences From Finite Data

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  • Christopher P. Chambers
  • Federico Echenique
  • Nicolas S. Lambert

Abstract

We study preferences estimated from finite choice experiments and provide sufficient conditions for convergence to a unique underlying “true” preference. Our conditions are weak and, therefore, valid in a wide range of economic environments. We develop applications to expected utility theory, choice over consumption bundles, and menu choice. Our framework unifies the revealed preference tradition with models that allow for errors.

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  • Christopher P. Chambers & Federico Echenique & Nicolas S. Lambert, 2021. "Recovering Preferences From Finite Data," Econometrica, Econometric Society, vol. 89(4), pages 1633-1664, July.
    • Handle: RePEc:wly:emetrp:v:89:y:2021:i:4:p:1633-1664
    DOI: 10.3982/ECTA17845
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    Cited by:

    1. Kubler, Felix & Malhotra, Raghav & Polemarchakis, Herakles, 2020. "Identification of preferences, demand and equilibrium with finite data," CRETA Online Discussion Paper Series 60, Centre for Research in Economic Theory and its Applications CRETA.
    2. Joshua Lanier & John K. -H. Quah, 2024. "Goodness-of-fit and utility estimation: what's possible and what's not," Papers 2405.08464, arXiv.org.
    3. Li, Chen & Wakker, Peter P., 2024. "A simple and general axiomatization of average utility maximization for infinite streams," Journal of Economic Theory, Elsevier, vol. 216(C).
    4. Pawel Dziewulski, 2021. "A comprehensive revealed preference approach to approximate utility maximisation," Working Paper Series 0621, Department of Economics, University of Sussex Business School.
    5. Felix Kubler & Raghav Malhotra & Herakles Polemarchakis, 2021. "Exact inference from finite market data," Papers 2107.07294, arXiv.org.
    6. Pablo Schenone, 2020. "Final Topology for Preference Spaces," Papers 2004.02357, arXiv.org, revised Mar 2024.

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