Mistakes in Choice-Based Welfare Analysis

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Preference purification and the inner rational agent: a critique of the conventional wisdom of behavioural welfare economics (2016, methodology): “A somewhat similar methodology is proposed by Kőszegi and Rabin (2007, 2008), who frame the problem as that of making inferences about individuals’ preferences from observations of their choices while recognising that the reasoning that led to these choice may have involved mistakes.”