Column: Hoosiers say they’d like to move; most of them end up staying home



A basic assumption of economics is the “axiom of revealed preference.” This is fundamental to economic analysis and distinguishes it from other branches of the social sciences.

In a nutshell, the axiom says: “What someone does tells us more about what they value than what they say.” Interesting, it is similar to what we learned in Sunday school back in Oklahoma — talk is cheap, actions are what matter.

For a mundane example, suppose a friend tells you he really prefers black coffee to coffee with cream.

 

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