This file is part of IDEAS , which uses RePEc data
[ Papers |
Articles |
Software |
Books |
Chapters |
Authors |
Institutions |
JEL Classification |
NEP reports |
Search |
New papers by email |
Author registration |
Rankings |
Volunteers |
FAQ |
Blog |
Help! ]
Two-Stage Boundedly Rational Choice Procedures: Theory and Experimental Evidence Author info | Abstract | Publisher info | Download info | Related research | Statistics Paola Manzini () (Queen Mary, University of London and IZA Bonn)
Marco Mariotti () (Queen Mary, University of London)
Additional information is available for the following
registered author(s):
We study and test a class of boundedly rational models of decision making which rely on sequential eliminative heuristics. We formalize two sequential decision procedures, both inspired by plausible models popular among several psychologists and marketing scientists. However we follow a standard ‘revealed preference’ economic approach by fully characterizing these procedures by few, simple and testable conditions on observed choice. Then we test the models (as well as the standard utility maximization model) with experimental data. We find that the large majority of individuals behave in a way consistent with one of our procedures, and inconsistent with the utility maximization model.
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page . Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number
2341.
Download reference. The following formats are available: HTML
(with abstract ),
plain text
(with abstract ),
BibTeX ,
RIS (EndNote, RefMan, ProCite),
ReDIF
Length: 69 pages
Date of creation: Sep 2006Date of revision:
Handle: RePEc:iza:izadps:dp2341Contact details of provider: Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany Phone: +49 228 3894 223 Fax: +49 228 3894 180 Web page: http://www.iza.org
Order Information: Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany Email:
For technical questions regarding this item, or to correct its listing, contact: (Mark Fallak).
Keywords: bounded rationality ; choice experiments ; Other versions of this item:
Find related papers by JEL classification: C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior D9 - Microeconomics - - Intertemporal Choice and Growth
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.:
Paola Manzini & Marco Mariotti & Luigi Mittone, 2006.
"Choosing Monetary Sequences: Theory and Experimental Evidence ,"
IZA Discussion Papers
2129, Institute for the Study of Labor (IZA).
[Downloadable!]
Other versions:
Paola Manzini & Marco Mariotti & Luigi Mittone, 2006.
"Choosing Monetary Sequences: Theory and Experimental Evidence ,"
Working Papers
562, Queen Mary, University of London, Department of Economics.
[Downloadable!] Paola Manzini & Marco Mariotti & Luigi Mittone, 2006.
"Choosing Monetary Sequences: Theory and Experimental Evidence ,"
CEEL Working Papers
0601, Computable and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia.
[Downloadable!] James Andreoni, 2001.
"Giving According to GARP ,"
Theory workshop papers
339, UCLA Department of Economics.
[Downloadable!]
William T. Harbaugh & Kate Krause & Timothy R. Berry, 2001.
"GARP for Kids: On the Development of Rational Choice Behavior ,"
Artefactual Field Experiments
0048, The Field Experiments Website.
[Downloadable!]
Other versions: Masatlioglu, Yusufcan & Ok, Efe A., 2005.
"Rational choice with status quo bias ,"
Journal of Economic Theory ,
Elsevier, vol. 121(1), pages 1-29, March.
[Downloadable!] (restricted)
Ariel Rubinstein & Yuval Salant, 2006.
"Two Comments on the Principle of Revealed Preference ,"
Levine's Bibliography
321307000000000272, UCLA Department of Economics.
[Downloadable!]
Philippe Février & Michael Visser, 2004.
"A Study of Consumer Behavior Using Laboratory Data ,"
Experimental Economics ,
Springer, vol. 7(1), pages 93-114, February.
[Downloadable!] (restricted)
Other versions: Rubinstein, A., 2000.
"Is it "Economics and Psychology"?: the Case of Hyperbolic Discounting ,"
Papers
2000-21, Tel Aviv.
Other versions:
Rubinstein, A., 2000.
"Is it "Economics and Psychology"?: the Case of Hyperbolic Discounting ,"
Papers
00-21, Tel Aviv.
Ariel Rubinstein, 2001.
"Is it 'Economics and Psychology'?: The Case of Hyperbolic Discounting ,"
NajEcon Working Paper Reviews
625018000000000219, www.najecon.org.
[Downloadable!] Ariel Rubinstein, 2000.
"Is It 'Economics and Psychology?' : The Case of Hyperbolic Discounting ,"
Levine's Bibliography
7640, UCLA Department of Economics.
[Downloadable!] Rubinstein, Ariel, 1988.
"Similarity and decision-making under risk (is there a utility theory resolution to the Allais paradox?) ,"
Journal of Economic Theory ,
Elsevier, vol. 46(1), pages 145-153, October.
[Downloadable!] (restricted)
Camerer, Colin F & Hogarth, Robin M, 1999.
"The Effects of Financial Incentives in Experiments: A Review and Capital-Labor-Production Framework ,"
Journal of Risk and Uncertainty ,
Springer, vol. 19(1-3), pages 7-42, December.
[Downloadable!] (restricted)
Faruk Gul & Wolfgang Pesendorfer, 2001.
"Temptation and Self-Control ,"
Econometrica ,
Econometric Society, vol. 69(6), pages 1403-1435, November.
[Downloadable!] (restricted)
Other versions: Paola Manzini & Marco Mariotti, 2004.
"Rationalizing Boundedly Rational Choice ,"
Microeconomics
0407005, EconWPA, revised 21 Jul 2005.
[Downloadable!]
Ariel Rubinstein, 2003.
""Economics and Psychology"? The Case of Hyperbolic Discounting ,"
International Economic Review ,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(4), pages 1207-1216, November.
[Downloadable!] (restricted)
John List & Craig Gallet, 2001.
"What Experimental Protocol Influence Disparities Between Actual and Hypothetical Stated Values? ,"
Environmental & Resource Economics ,
European Association of Environmental and Resource Economists, vol. 20(3), pages 241-254, November.
[Downloadable!] (restricted)
Amartya Sen, 1997.
"Maximization and the Act of Choice ,"
Econometrica ,
Econometric Society, vol. 65(4), pages 745-780, July.
Other versions: Shane Frederick & George Loewenstein & Ted O'Donoghue, 2002.
"Time Discounting and Time Preference: A Critical Review ,"
Journal of Economic Literature ,
American Economic Association, vol. 40(2), pages 351-401, June.
Camerer, Colin F. & Hogarth, Robin M., 1999.
"The Effects of Financial Incentives in Experiments: A Review and Capital-Labor-Production Framework ,"
Working Papers
1059, California Institute of Technology, Division of the Humanities and Social Sciences.
[Downloadable!]
Daniel Read, 2005.
"Monetary incentives, what are they good for? ,"
Journal of Economic Methodology ,
Taylor and Francis Journals, vol. 12(2), pages 265-276, June.
[Downloadable!] (restricted)
Gil Kalai & Ariel Rubinstein & Ran Spiegler, 2002.
"Rationalizing Choice Functions By Multiple Rationales ,"
Econometrica ,
Econometric Society, vol. 70(6), pages 2481-2488, November.
[Downloadable!] (restricted)
Other versions: repec:att:wimass:1920510 is not listed on IDEAS
Sen, Amartya, 1993.
"Internal Consistency of Choice ,"
Econometrica ,
Econometric Society, vol. 61(3), pages 495-521, May.
[Downloadable!] (restricted)
James Andreoni & John Miller, 2002.
"Giving According to GARP: An Experimental Test of the Consistency of Preferences for Altruism ,"
Econometrica ,
Econometric Society, vol. 70(2), pages 737-753, March.
[Downloadable!] (restricted)
Full
references
Access and
download statistics Did you know? Cannot find something on IDEAS? Encourage the publisher to index it! Instructions .
This page was last updated on 2009-11-16.
This information is provided to you by IDEAS at the Department of Economics , College of Liberal Arts and Sciences , University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics .