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Published August 2020 | Accepted Version
Journal Article Open

New Developments in Revealed Preference Theory: Decisions Under Risk, Uncertainty, and Intertemporal Choice


This article reviews recent developments in revealed preference theory. It discusses the testable implications of theories of choice that are germane to specific economic environments. The focus is on expected utility in risky environments, subjected expected utility and maxmin expected utility in the presence of uncertainty, and exponentially discounted utility for intertemporal choice. The testable implications of these theories for data on choice from classical linear budget sets are described and shown to follow a common thread. The theories all imply an inverse relation between prices and quantities, with different qualifications depending on the functional forms in the theory under consideration.

Additional Information

© 2020 Annual Reviews. First published as a Review in Advance on May 6, 2020. I thank Taisuke Imai, Kota Saito and John Quah for comments on an earlier draft, and the National Science Foundation for support through the grants SES-1558757 and CNS-1518941. This paper has been accepted for publication in Volume 12 of the Annual Review of Economics.

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Accepted Version - 1908.07561.pdf


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