Axioms for Salience Perception

Jonathan Leland (), Mark Schneider () and Jonathan Leland ()
Additional contact information
Jonathan Leland: National Science Foundation
Mark Schneider: Economic Science Institute, Chapman University
Jonathan Leland: National Science Foundation, Division of Social and Economic Sciences
Authors registered in the RePEc Author Service: Jonathan W. Leland

Working Papers from Chapman University, Economic Science Institute

Abstract: Models of salience-based choice have become popular in recent years, although there is still no known set of simple conditions or axioms which implies the existence of a salience function. In this paper, we provide simple and natural axioms that characterize the general class of salience functions. As an application we consider a salience-based model of decision making and show that within that setup the fourfold pattern of risk attitudes is a general property of a salience function and that the properties producing that pattern also account for other anomalies involving risky and intertemporal choice.

Keywords: Salience; Diminishing Sensitivity; Fourfold Pattern of Risk Attitudes (search for similar items in EconPapers)
JEL-codes: D01 D03 D8 D9 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-mic and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:chu:wpaper:16-15

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