Using Budget Pies to Reveal Preferences

Validation of a Survey Instrument

Bibliographic Data

ID6326352
AuthorsJohn P Mciver, Elinor Ostrom, Элинор Остром
Year1976
Volume4
Issue4
Pages87-110
Publication date1976-06-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenuePolicy & Politics (JOURNAL)
Journal identifiersISSN: 0305-5736 • E-ISSN: 1470-8442
PublisherBristol University Press (PUBLISHER • GB)
DOI10.1332/030557376783015695
OpenAlexW1969194122
LanguageEN
Citations received11

Why use a budget pie? A classic problem faccs everyone who is curious about the perferences of at least one other individual: How can some simple questions lead us to accurately know about another’s preferences? Husbands and wives sometimes face this problem when they are trying to find out where the other would like to vacation, what type of Christmas present the other would like, and so on. Some spouses try to hide their own prefercnces, deferring instead to the preferences of the other. Some married couples end up doing something neither partner prefers, both of them believing they are doing the thing the other most wants. In the market-place, the entrepreneur faces the problem of ascertaining what his customers prefer. A misjudgement on his part will result in a loss of sales and profit. Continued difficulty in determining others’ prefcrences will result in business failure. But a private entrepreneur does have some information to go on. As private consumers purchase goods, they reveal their preferences for certain goods at one price over other goods at other prices. In the short run, quid pro quo relationships reveal much about the preferences of buyers for the goods and services they are currently offered

Advertising · Business · Economics · Face (sociological concept · Goods and services · Market economy · Microeconomics · Profit (economics · Simple (philosophy · Status quo · Gender, Labor, and Family Dynamics · Marketing

Tools

Open DOISci-Hub