Revealed Preferences and Growth Patterns
For Indonesia, it is interesting trying to reveal consumer preferences before and after the Covid-19 pandemic.
Ari Kuncoro
Indonesia recorded economic growth of 5.03 percent in the first quarter of 2023, with the largest contribution coming from public consumption. Therefore, it is interesting to note the dynamics of consumption. In this case, the revealed preference theory, first put forward by Samuelson (1938) and then developed by Afriat (1967) and Mathew (2007), is used to reconstruct consumer preferences from consumption data.
As a preference is ordinal (ranking), it is only an indication of priority that is not bound by numerical value. Revealed preference has weakness, as the assumption of preferences does not change (constancy) over time. In fact, as time passes, especially in the current world situation, external conditions that are beyond the control of consumers are always changing so that behavioral adaptation is required.