Rational indecisive choice
AbstractThis paper proposes and characterises two preference-based choice rules that allow the decision maker to choose nothing if the criteria associated with them are satisfied by no feasible alternative. Strict preferences are primitive in the first rule and weak preferences in the second. Each of them includes the corresponding utility-maximisation theory of rational choice as a special case. The first one explains changes in the magnitude of context effects observed in experiments that allow for indecision. The second offers one explanation of experimental findings suggesting that choice is more likely to be made from small rather than from large sets. The general conclusion in both cases is that an individual conforms to meaningful and testable principles of choice consistency whenever assumed to be occasionally indecisive.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 25481.
Date of creation: 27 Sep 2010
Date of revision:
Rationality; indecision; incomplete preferences; choice rules;
Find related papers by JEL classification:
- D03 - Microeconomics - - General - - - Behavioral Microeconomics; Underlying Principles
- D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
- D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-10-09 (All new papers)
- NEP-EVO-2010-10-09 (Evolutionary Economics)
- NEP-HPE-2010-10-09 (History & Philosophy of Economics)
- NEP-UPT-2010-10-09 (Utility Models & Prospect Theory)
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