Revealed Preference
A method of analyzing choices made by individuals, mostly used for comparing the influence of policies on consumer behavior — and assumes that the preferences of consumers can be revealed by their purchasing habits.
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Origin
Introduced by economist Paul Samuelson in a 1938 paper. Rather than asking people what they want, Samuelson proposed inferring preferences from actual purchasing behavior. The elegant insight: if you buy apples when oranges are equally affordable, you’ve revealed a preference for apples. The theory became foundational to modern consumer choice and demand analysis.
Updated February 22, 2026