Heavy Lifting - thoughts and web finds by an economist
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Monday, August 23, 2004

Animals have revealed preference?

We might have heard about the bear that drank 36 beers before passing out.

What was really interesting in that story was the following:
It turns out the bear was a bit of a beer sophisticate. He tried a mass-market Busch beer, but switched to Rainier Beer, a local ale, and stuck with it for his drinking binge.

The bear revealed his true preference for the more expensive beer...beautiful. Now, what if the price of Rainier beer increased? How much Busch would the bear consume?

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