Decision Making under Dual-System Thinking

Yusufcan Masatlioglu and Tri Phu Vu

Papers from arXiv.org

Abstract: This paper introduces the Dual-System Thinking (DST) model, a decision-theoretic framework that integrates psychological dual-process theories into economic modeling. A single cognitive weight parameter governs the relative influence of the automatic and deliberate cognitive systems. Even the simplest form of DST exhibits distinct behavioral patterns, suggesting that the psychological insights of dual-system theory offer a distinct and valuable approach to modeling choice behavior. Empirically, we show that the model can accommodate several empirical findings and outperform well-known models in discrete choice analysis across various contexts. We also apply the model to study optimal list design and rationality in stochastic environments.

Date: 2026-05
References: Add references at CitEc
Citations:

Downloads: (external link)
http://arxiv.org/pdf/2605.27698 Latest version (application/pdf)

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:arx:papers:2605.27698

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().