Aspiration-based choice

A-Tier
Journal: Journal of Economic Theory
Year: 2018
Volume: 176
Issue: C
Pages: 935-956

Authors (3)

Guney, Begum (not in RePEc) Richter, Michael (City University of New York (C...) Tsur, Matan (not in RePEc)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

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

Abstract

Numerous studies and experiments suggest that aspirations for desired but perhaps unavailable alternatives influence decisions. A common finding is that an unavailable aspiration steers agents to choose similar available alternatives. We propose and axiomatically characterize a choice theory consistent with this aspirational effect. Similarity is modeled using a subjective metric derived from choice data. This model offers implications for consumer welfare and its distribution between rich and poor when firms compete for aspirational agents, and a novel rationale for sales.

Technical Details

RePEc Handle
repec:eee:jetheo:v:176:y:2018:i:c:p:935-956
Journal Field
Theory
Author Count
3
Added to Database
2026-01-29