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.
Article PDF
Similar content being viewed by others
Avoid common mistakes on your manuscript.
References
Altaf, Mir Anjum. "Attitude Towards Risk: An Empirical Demonstration of Context Dependence,"Journal of Economic Behavior and Organization, 21, 1993, pp. 91–8.
Becker, Gary S.The Economic Approach to Human Behavior, Chicago, IL: The University of Chicago Press, 1976.
Daft, R. L.; Lengel, R. H. "Organizational Information Requirements, Media Richness and Structural Design,"Management Science, 32, 5, 1986, pp. 554–71.
Diamond, Arthur M. Jr.A Search Equilibrium Approach to the Microfoundations of Macroeconomics, Cambridge, MA: MIT Press.
Esser, Hartmut. "The Rationality of Everyday Behavior,"Rationality and Society, 5, 1, January 1993, pp. 7–31.
Etzioni, Amitai. "The Case for a Multiple-Utility Conception,"Economics and Philosophy, 2, 1986, pp. 159–83.
Fox, Craig R.; Tversky, Amos. "Ambuiguity Aversion and Comparative Ignorance,"Quarterly Journal of Economics, 109, 3, August 1995, pp. 585–603.
George, David. "Metapreferences: Reconsidering Contemporary Notions of Free Choice,"International Journal of Social Economics, 11, 3/4, 1984, pp. 92–107.
__. "Does the Market Create Preferred Preferences?,"Review of Social Economy, 51, 3, Fall 1993, pp. 323–46.
Gilboa, Itzhak; Schmeidler, David. "Case-Based Decision Theory,"Quarterly Journal of Economics, 109, 3, August 1995a, pp. 605–39.
__. "Case-Based Optimization,"Games and Economic Behavior, 1995b, in press.
__. "Act Similarity in Case-Based Decision Theory,"Economic Theory, 1995c, in press.
Hammermesh, Daniel; Soss, N. "An Economic Theory of Suicide,"Journal of Political Economy, 82, 1974, pp. 83–98.
Hodgson, Geoffrey M.Economics and Evolution, Ann Arbor, MI: The University of Michigan Press, 1994.
Jonsson, Petur O. "Choice, Consistency, and Utility Maximization: Reflections on the Concept of Rationality,"Journal of Economics, 18, 1992, pp. 119–26.
__. "Social Influence and Individual Preferences: On Schumpeter's Theory of Consumer Choice,"Review of Social Economy, 52, 4, 1994, pp. 301–14.
__. "Choice, Uncertainty, and Innovation: A New Look at Consumer Entrepreneurs,"Journal of Private Enterprise, 11, 1, 1995, in press.
Kreps, David M.A Course in Microeconomic Theory, Princeton, NJ: Princeton University Press, 1990.
Lachman, Ludwig M.Expectations and the Meaning of Institutions, London: Routledge, 1994.
Lakatos, Imre.The Methodology of Scientific Research Programmes, Cambridge, MA: Cabridge University Press, 1978.
Mises, Ludwig von.Human Action, New Haven, CT: Yale University Press, 1949.
Rawls, John.A Theory of Justice, Cambridge, MA: Harvard University Press, 1971.
Rosser, Barkley Jr. "Belief: Its Role in Economic Thought and Action,"American Journal of Economics and Sociology, 52, 1993, pp. 355–68.
Schumpeter, Joseph A. "On the Concept of Social Value,"Quarterly Journal of Economics, 23, 1909, pp. 213–32.
__.The Theory of Economic Development, Cambridge, MA: Harvard University Press, 1934.
__. "The Creative Response in Economic History,"Journal of Economic History, 7, 1947, pp. 149–59.
Sen, Amartya. "Internal Consistency of Choice,"Econometrica, 61, May 1993, pp. 495–521.
Tversky, Amos. "Intransitivity of Preferences,"Psychological Review, 76, 1969, pp. 31–48.
Tversky, Amos; Kahneman, Daniel. "The Framing of Decisions and the Psychology of Choice,"Science, 211, 1981, pp. 453–58. [Reprinted in Elster, J.Rational Choice, Oxford: Basil Blackwell, 1986.]
Weintraub, Roy E.General Equilibrium Analysis: Studies in Appraisal, Ann Arbor, MI: University of Michigan Press, 1993. [Originally published New York: Cambridge University Press, 1985.]
Author information
Authors and Affiliations
Additional information
The paper has benefited from a number of helpful comments received from the participants in the session on microeconomic theory at the Atlantic Economic Conference in Williamsburg, Virginia.
Rights and permissions
About this article
Cite this article
Jonsson, P.O. On meta-preferences and incomplete preference maps. International Advances in Economic Research 2, 112–119 (1996). https://doi.org/10.1007/BF02295050
Issue Date:
DOI: https://doi.org/10.1007/BF02295050