Revealed preference

Revealed preference is a way of figuring out what people like and prefer by looking at their choices. It is a bit like using clues to figure things out in a mystery story. A way to understand revealed preference would be like this: Imagine that you are trying to figure out someone's favorite ice cream flavor. You can ask them what their favorite flavor is, and they might tell you that it is chocolate. But if you see that they always choose the strawberry ice cream instead when you are all in the ice cream shop together, then you can use revealed preference to guess that strawberry might be their true favorite instead of chocolate. By looking at their choices, you can understand what their preferences are without them actually needing to tell you.