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Asymmetric Dominance, Deferral and Status Quo Bias in a Theory of Choice with Incomplete Preferences

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  • Gerasimou, Georgios

Abstract

This paper proposes a model of individual choice that does not assume completeness of the decision maker's preferences. The model helps explain in a natural way, and within a unied framework of choice in the presence of preference-incomparable options, three distinct behavioural phenomena: the asymmetric dominance/attraction effect, choice deferral and status quo bias. A decision maker who follows the decision rule featured in the model chooses an alternative from a menu if it is totally preference-undominated in that menu and at the same time is also partially preference-dominant. In situations where the decision maker's preferences are complete the model delivers strict utility maximisation.

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File URL: http://mpra.ub.uni-muenchen.de/40097/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 40097.

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Date of creation: 07 Jul 2012
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Handle: RePEc:pra:mprapa:40097

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Related research

Keywords: Attraction Effect; Choice Deferral; Status Quo Bias; Incomplete Preferences; Bounded Rationality;

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