Rationalizing Boundedly Rational Choice

Paola Manzini and Marco Mariotti

Microeconomics from University Library of Munich, Germany

Abstract: A Rational Shortlist Method (RSM) translates into economic language some sequential choice heuristics studied in psychology. We show that the use of this boundedly rational procedure can be detected from observed choice data through tests that are very similar to those used to detect `rational' choice (such as Samuelson's WARP). Yet, RSMs are compatible with some highly `irrational' patterns of choice observed in experiments, such as pairwise cycles. We also provide partial results on a generalization of RSMs.

Keywords: rationalizability of choice; bounded rationality; intransitive choice; incomplete preferences; menu dependence (search for similar items in EconPapers)
JEL-codes: D0 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2004-07-12, Revised 2005-12-21
New Economics Papers: this item is included in nep-cbe and nep-dcm
Note: Type of Document - pdf; pages: 26
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Citations: View citations in EconPapers (17)

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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpmi:0407005

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