CaltechAUTHORS
  A Caltech Library Service

Economic Theory of Choice and the Preference Reversal Phenomenon

Grether, David M. and Plott, Charles R. (1979) Economic Theory of Choice and the Preference Reversal Phenomenon. American Economic Review, 69 (4). pp. 623-638. ISSN 0002-8282. http://resolver.caltech.edu/CaltechAUTHORS:20140220-104722203

[img]
Preview
PDF - Published Version
See Usage Policy.

386Kb

Use this Persistent URL to link to this item: http://resolver.caltech.edu/CaltechAUTHORS:20140220-104722203

Abstract

A body of data and theory has been developing within psychology which should be of interest to economists. Taken at face value the data are simply inconsistent with preference theory and have broad implications about research priorities within economics. The inconsistency is deeper than the mere lack of transitivity or even stochastic transitivity. It suggests that no optimization principles of any sort lie behind even the simplest of human choices and that the uniformities in human choice behavior which lie behind market behavior may result from principles which are of a completely different sort from those generally accepted. This paper reports the results of a series of experiments designed to discredit the psychologists' works as applied to economics.


Item Type:Article
Related URLs:
URLURL TypeDescription
http://www.jstor.org/stable/1808708OrganizationJSTOR Article
Additional Information:© 1979 American Economic Association. Reprinted in Recent Developments in Economic Theory of Choice and the Preference Reversal Phenomenon experimental Economics, vol.1, no. 5, pp. 131-146, edited by J. D. Hey and G. Loomes. Edward Elgar Publishing Ltd, U.K., 1993. Reprinted in Psychology Reader, by David Eckerman, Kendall/Hunt Publishing Co., Dubuque, Iowa (1993). Reprinted in Time in Economic Theory (2004), edited by Stefano Zamagni and Elettra Agliardi (part of The International Library of Critical Writings in Economics, Series Editor: Mark Blaug). Reprinted in Experiments in Environmental Economics, Volumes I and II, edited by Jason F. Shogren (2006). Part of The International Library of Environmental Economics and Policy, overall general editors of the series, Tom Tietenberg and Kathy Segerson. Professors of economics, California Institute of Technology. The financial support supplied by the National Science Foundation and the National Aeronautics and Space Administration is gratefully acknowledged. We wish to express our appreciation to Brian Binger, Elizabeth Hoffman, and Steven Matthews, who served as research assistants.
Group:Social Science Working Papers
Funders:
Funding AgencyGrant Number
NSFUNSPECIFIED
NASAUNSPECIFIED
Other Numbering System:
Other Numbering System NameOther Numbering System ID
Social Science Working Paper152
Record Number:CaltechAUTHORS:20140220-104722203
Persistent URL:http://resolver.caltech.edu/CaltechAUTHORS:20140220-104722203
Official Citation:Economic Theory of Choice and the Preference Reversal Phenomenon David M. Grether and Charles R. Plott The American Economic Review , Vol. 69, No. 4 (Sep., 1979) , pp. 623-638 Published by: American Economic Association Article Stable URL: http://www.jstor.org/stable/1808708
Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:43896
Collection:CaltechAUTHORS
Deposited By: Susan Vite
Deposited On:20 Feb 2014 19:03
Last Modified:13 Feb 2019 18:05

Repository Staff Only: item control page