Welfare analysis when choice is status-quo biased

B-Tier
Journal: Journal of Mathematical Economics
Year: 2022
Volume: 102
Issue: C

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We provide a revealed preference analysis in models where choice may be status-quo biased. We study the relevant case in which data is limited and make reasonable assumptions on how status-quo may structure behavior. We show how to elicit true, welfare-relevant, preferences of a biased decision maker and argue that imposing more structure may significantly improve welfare analysis. We prove that a combination of two variants of the well-known strong-axiom of revealed preference characterizes status-quo biased behavior.

Technical Details

RePEc Handle
repec:eee:mateco:v:102:y:2022:i:c:s0304406822000623
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25