On two Points of View Regarding revealed Preference and behavioral Economics

Certain methodological debates regarding behavioral economics seem to involve, more often than not, the notion of revealed preferences. As part of philosophical tradition, the principle of revealed preference entails how restrictions are handled when practiced professionally. This principle came about during a time when choice was not the only relevant factor in selecting a consumption bundle from a budget set. This principle implies that an economist's view is valid only when the utility functions are distinguishable from a pool of choices that are essential in taking on a policy issue. As one can observe that economists' attitudes appear to influence their views and opinions on paternalistic policies and how they evaluate specific economic models, this chapter takes a closer look at this linkage through examining its other aspects.