On meta-preferences and incomplete preference maps

Document Type

Article

Publication Date

1-1-1996

Abstract

The paper suggests that a consumer's specific preferences for goods are derived from underlying meta-preferences. In this context, the paper demonstrates that preferences for goods must always be incomplete. Hence, the problem of mapping out preferences should be considered an integral part of the consumer's basic optimization problem. In turn, this means that learning and innovation must play a role in the consumption process and that observed choices do not always reveal a consumer's underlying preferences. Some choices are made simply to try out new things and, whenever the consumer does not like the results, a choice will not be repeated. Accordingly, one cannot always rely on revealed preferences to predict future behavior. (JEL D11).

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