Demand revealing ? two minor notes

Abstract

The purpose of this section is to correct an error in Tideman's and my "A New and Superior Process for Making Social Choices."' The correction of this error will I think improve the attractiveness of the demand-revealing process, so we are producing a further argument for advocates of the process rather than criticizing it. The error concerns the discussion of the wealth effect in the discrete option case (p. 1151) of the article. What we say there seems reasonable, that the value of the choice of A over B may be affected by the existence of a third alternative which, in essence, changes the wealth of the voter. But note that there is also wealth effect in the continuous case. The example of a wealth effect (p. 1151) is one in which there are three instead of two alternatives. If we turn to the continuous case; for example, the Figure 1 (p. 1153), there are infinite number of alternatives because all points on horizontal axis are, in essence, up for grabs. The demand curve of the individual shows his evaluation of each of these in-