Formal Models of Bounded Rationality

We have focussed on two main aspects:
1) the impact of ambiguity in the perception of categories on the part of the decision maker;
2) menu-dependent procedures and of the number of properties considered.
As for the first issue, we provide a psychologically based foundation for choice errors. The model we construct has a rich set of implications, of which we highlight that less rational agents may paradoxically express their preference through choice more truthfully than more rational agents.
As for the second set of issues, we have two main results: in one paper we model the effect of mood on choice, and show that, even with full unpredictability of mood, the way choices from a menu relate to choices from another menu must satisfy some consistency requirement. In another paper, we provide a formalization of the cognitive mechanisms in decision making that marketeers can exploit to manipulate choice.