TY - JOUR
T1 - Categorize Then Choose
T2 - Boundedly Rational Choice and Welfare
AU - Manzini, Paola
AU - Mariotti, Marco
PY - 2012/10
Y1 - 2012/10
N2 - We propose a boundedly rational model of choice where agents categorize alternatives before choosing. The model explains some behavioral anomalies, and it is fully characterized by a property of choice data: a categorizer can never exhibit certain patterns of “revealed preference reversals”. This model offers clues on the problem of making welfare judgements in the presence of boundedly rational agents.
AB - We propose a boundedly rational model of choice where agents categorize alternatives before choosing. The model explains some behavioral anomalies, and it is fully characterized by a property of choice data: a categorizer can never exhibit certain patterns of “revealed preference reversals”. This model offers clues on the problem of making welfare judgements in the presence of boundedly rational agents.
UR - http://onlinelibrary.wiley.com/doi/10.1111/j.1542-4774.2012.01078.x/pdf
U2 - 10.1111/j.1542-4774.2012.01078.x
DO - 10.1111/j.1542-4774.2012.01078.x
M3 - Article
SN - 1542-4766
VL - 10
SP - 1141
EP - 1165
JO - Journal of the European Economic Association
JF - Journal of the European Economic Association
IS - 5
ER -