Ep. 667: Timur Kuran Interview with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
00:00
The Aha Moment of Preference Falsification
When you were a PhD student at Stanford studying economics, one of the fundamental theories that any economic students learns is the theory of revealed preference. Theory says we can't tell what people's preferences are because they're in their minds. So this stayed in the back of my mind but as I was working on other subjects, I decided to start working on an alternative conception of preferences. That would distinguish between honestly revealed preferences and feigned preferences. Famed the process of expressing or feigning preferences is what I ultimately called a preference falsification.
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