Partially dominant choice

Georgios Gerasimou

    Research output: Contribution to journal › Article › peer-review

    Abstract

    This paper proposes and analyzes a model of context-dependent choice with stable but incomplete preferences that is based on the idea of partial dominance: An alternative is chosen from a menu if it is not worse than anything in the menu and is also better than something else. This choice procedure provides a simple explanation of the attraction/decoy effect. It reduces to rational choice when preferences are complete in two ways that are made precise. Some preference identification and choice consistency properties associated with this model are analyzed, and certain ways in which its predictions differ from those of other recently proposed models of the attraction effect are also discussed.
    Original languageEnglish
    Pages (from-to)127-145
    JournalEconomic Theory
    Volume61
    Issue number1
    Early online date17 Mar 2015
    DOIs
    Publication statusPublished - Jan 2016

    Keywords

    • Incomplete preferences
    • Partial dominance
    • Attraction/decoy effect
    • Rational choice
    • Context dependence

    Access to Document

    • PDC

      (c) Copyright Springer-Verlag Berlin Heidelberg 2015. This is the author's final accepted manuscript of this article. The final publication is available at Springer via http://link.springer.com/article/10.1007/s00199-015-0869-8

      Accepted author manuscript, 426 KB

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