State dependent choice

Paola Manzini; Marco Mariotti

doi:10.1007/s00355-015-0894-3

State dependent choice

Paola Manzini, Marco Mariotti

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

Abstract

We propose a theory of choices that are influenced by the psychological state of
the agent. The central hypothesis is that the psychological state controls the
urgency of the attributes sought by the decision maker in the available alternatives. While state dependent choice is less restricted than rational choice, our model does have empirical content, expressed by simple ‘revealed preference’ type of constraints on observable choice data. We demonstrate the applicability of simple versions of the framework to economic contexts. We show in particular that it can explain widely researched anomalies in the labour supply of taxi drivers.

Original language	English
Pages (from-to)	239-268
Number of pages	30
Journal	Social Choice and Welfare
Volume	45
Issue number	2
Early online date	22 Apr 2015
DOIs	https://doi.org/10.1007/s00355-015-0894-3
Publication status	Published - Sept 2015

Keywords

Bounded rationality
Procedural rationality
Utility maximization
Choice Behavior

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10.1007/s00355-015-0894-3

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© Springer-Verlag Berlin Heidelberg 2015. This is the author's accepted manuscript. The final publication is available at Springer via http://dx.doi.org/10.1007/s00355-015-0894-3
Accepted author manuscript, 5.8 MB

Cite this

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State dependent choice

Abstract

Keywords

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Formal Models of Bounded Rationality: Formal Models of Bounded Rationality

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State dependent choice

Abstract

Keywords

Access to Document

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Formal Models of Bounded Rationality: Formal Models of Bounded Rationality

Cite this