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Rational Filters

Author

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  • Hassan Nosratabadi

    (Rutgers, The State University Of New Jersey)

Abstract

It has been widely documented that reference points influence the choice. If references affect choice by attracting attention towards an alternative, what can be said about the joint effect of the references? Assuming that references form preferences, or are rational filters, this paper extracts a reference-dependent choice model with joint referential effects from WARP. Assume that a DM has an ''unfiltered'' pairwise preference which is inferred from her choice over doubletons. The DM's uses her rational filters consecutively on the pairwise preference in order to finalize her choice.

Suggested Citation

  • Hassan Nosratabadi, 2017. "Rational Filters," Departmental Working Papers 201706, Rutgers University, Department of Economics.
    • Handle: RePEc:rut:rutres:201706
    as

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    File URL: http://www.sas.rutgers.edu/virtual/snde/wp/2017-06.pdf
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    References listed on IDEAS

    as
    1. Hiroki Nishimura & Efe A. Ok & John K.-H. Quah, 2017. "A Comprehensive Approach to Revealed Preference Theory," American Economic Review, American Economic Association, vol. 107(4), pages 1239-1263, April.
    2. Hassan Nosratabadi, 2017. "Referential Revealed Preference Theory," Departmental Working Papers 201707, Rutgers University, Department of Economics.
    3. Paola Manzini & Marco Mariotti, 2007. "Sequentially Rationalizable Choice," American Economic Review, American Economic Association, vol. 97(5), pages 1824-1839, December.
    4. Efe A. Ok & Pietro Ortoleva & Gil Riella, 2015. "Revealed (P)Reference Theory," American Economic Review, American Economic Association, vol. 105(1), pages 299-321, January.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Rational Preferences; Rational Filters; Revealed Preference; Referential Decision Maker; WARP Decompositions;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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