This note is a part of my Zettelkasten. What is below might not be complete or accurate. It is also likely to change often.
19th September, 2020

Revealed Preference

These are notes from MITxMicromasters program in Data, Economics and development policy.

Its very hard to understand the value people place on things which cannot be directly priced by the market. However, sometimes they reveal their underlying valuation in a phenomenon called Revealed Preference

For example: How to value a life? People reveal that by their market choices - how much people pay for safer cars or a lifesaving intervention; how much you have to pay people to take a job which might kill them.

Revealed preferences might be highly effected by Biases