revealed preference method

Revealed preference is an approach used in economics to understand people's preferences based on their actual choices rather than asking them directly. It assumes that the choices individuals make, such as purchasing a product or choosing between options, reveal their true preferences because they select what they value most given their budget and constraints. By analyzing these choices over time and in different situations, economists can infer what people prefer, helping to predict their future decisions and understand how they value different goods and services.