A simple model of two-stage choice

Dan Qin ()

Journal of Mathematical Economics, 2024, vol. 112, issue C

Abstract: This article studies a simple choice model in which two menu-dependent preferences jointly determine behavior. By relaxing multiple assumptions of rational choice theory, our model accounts for many choice anomalies. Nevertheless, we show that the model still possesses empirical content by characterizing it with squeezing conditions directly generalized from standard contraction and expansion conditions. Due to its generality, our model can serve as an umbrella under which three lines of nonstandard choice procedures can be organized: maximization of menu-dependent preference, preference maximization over part of the menu, and the rational shortlisting method. Our model is more than an organizational device because the two preferences can be interpreted as “simple and heuristic” and “complex and deliberate” decision-making methods with multiple selves who are divided into coalitions.

Keywords: Bounded rationality; Shortlisting; Revealed preference; Multi-self model; Dual-self model (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0304406824000417
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:mateco:v:112:y:2024:i:c:s0304406824000417

DOI: 10.1016/j.jmateco.2024.102979

Access Statistics for this article

Journal of Mathematical Economics is currently edited by Atsushi (A.) Kajii

More articles in Journal of Mathematical Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().