(F)Lexicographic shortlist method

B-Tier
Journal: Economic Theory
Year: 2018
Volume: 65
Issue: 1
Pages: 79-97

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

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

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.

Technical Details

RePEc Handle
repec:spr:joecth:v:65:y:2018:i:1:d:10.1007_s00199-016-1006-z
Journal Field
Theory
Author Count
1
Added to Database
2026-01-25