- A decade ago I suggested that the economic theory of consumer's behaviour can be largely built up on the notion of "”revealed preference”. By comparing the costs of different combinations of goods at different relative price situations, we can infer whether a given batch of goods is preferred to another batch; the individual guinea-pig, by his market behaviour, reveals his preference pattern - if there is such a consistent pattern.
- Recently, Mr. Ian M. D. Little of Oxford University has made an important contribution to this field. In addition to showing the changes in viewpoint that this theory may lead to, he has presented an ingenious proof that if enough judiciously selected price-quantity situations are available for two goods, we may define a locus which is the precise equivalent of the conventional indifference curve.
- I should like, briefly, to present an alternative demonstration of this same result. While the proof is a direct one, it requires a little more mathematical reasoning than does his.
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