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External Norms and Rationality of Choice

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Author Info
Bossert, Walter
Suzumura, Kotaro

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Abstract

Ever since Sen (1993) criticized the notion of internal consistency of choice, there exists a widespread perception that the standard rationalizability approach to the theory of choice has difficulties in coping with the existence of external norms. We introduce a concept of norm-conditional rationalizability and show that external norms can be made compatible with the methods underlying the rationalizability approach. This claim is substantiated by characterizing norm-conditional rationalizability by means of suitably modified revealed preference axioms in the theory of rational choice on general domains due to Richter (1966; 1971) and Hansson (1968).

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File URL: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/15849/1/pie_dp382.pdf
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Publisher Info
Paper provided by Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University in its series PIE/CIS Discussion Paper with number 382.

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Length: 17 p.
Date of creation: Jul 2008
Date of revision:
Handle: RePEc:hit:piecis:382

Note: This version: June 29, 2008
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Web page: http://cis.ier.hit-u.ac.jp/
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Find related papers by JEL classification:
D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations

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