EconPapers    
Economics at your fingertips  
 

(F)Lexicographic shortlist method

Christopher Kops ()
Additional contact information
Christopher Kops: University of Cologne

Economic Theory, 2018, vol. 65, issue 1, 79-97

Abstract: Abstract Standard rational choice relies on the assumption that a decision maker is certain about her preferences. The psychology literature, on the other hand, provides well-established evidence that consumers are often uncertain about the true value of alternatives. This is particularly so when alternatives have several attributes and focusing on different attributes shifts a decision maker’s ranking of alternatives. In this paper, we propose and behaviorally characterize a new model of boundedly rational choice that formalizes these insights from psychology into a choice procedure. Simply put, our approach introduces menu dependence into the idea of lexicographic preferences. We study some of its properties and highlight how this procedure exacerbates any welfare judgments.

Keywords: Menu-dependent choice; Rational shortlist method; Violations of WARP; Boundedly rational choice; Lexicographic preferences (search for similar items in EconPapers)
JEL-codes: D01 D60 D70 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s00199-016-1006-z Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:joecth:v:65:y:2018:i:1:d:10.1007_s00199-016-1006-z

Ordering information: This journal article can be ordered from
http://www.springer. ... eory/journal/199/PS2

Access Statistics for this article

Economic Theory is currently edited by Nichoals Yanneils

More articles in Economic Theory from Springer, Society for the Advancement of Economic Theory (SAET) Contact information at EDIRC.
Series data maintained by Sonal Shukla ().

 
Page updated 2018-02-15
Handle: RePEc:spr:joecth:v:65:y:2018:i:1:d:10.1007_s00199-016-1006-z