| has gloss | eng: Behavioral economics * Revealed preference : Does Revealed Preference theory truly reveal consumer preference when the consumer is able to afford all of the available options? For example, if a consumer is confronted with three goods and he can afford to purchase all three A, B, and C and he chooses to first purchase A, then C, and then B - does this suggest that the consumer preference for the goods is A > C > B? The debate rests on the fact that since the consumer can afford all three goods and does not need to make a preferential decision, does the order of consumption reflect any preference? * Tâtonnement: The act of tâtonnement plays a key role in the formulation of the general equilibrium theory. The claim is that if an initial contract does not lead to an equilibrium, they are ended and new contracts are formulated. |