Choice by sequential procedures
We propose a rule of decision-making, the sequential procedure guided by routes, and show that three influential boundedly rational choice models can be equivalently understood as special cases of this rule. In addition, the sequential procedure guided by routes is instrumental in showing that the three models are intimately related. We show that choice with a status quo bias is a refinement of rationalizability by game trees, which, in turn, is also a refinement of sequential rationalizability. Thus, we provide a sharp taxonomy of these choice models, and show that they all can be understood as choice by sequential procedures.
If you experience problems downloading a file, check if you have the proper application to view it first. 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
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.:
- Attila Ambrus & Kareen Rozen, 2008.
"Rationalizing Choice with Multi-Self Models,"
Cowles Foundation Discussion Papers
1670, Cowles Foundation for Research in Economics, Yale University, revised May 2012.
- Jose Apesteguia & Miguel Angel Ballester, 2010.
"A measure of rationality and welfare,"
Economics Working Papers
1220, Department of Economics and Business, Universitat Pompeu Fabra, revised Oct 2014.
- Mandler, Michael & Manzini, Paola & Mariotti, Marco, 2012.
"A million answers to twenty questions: Choosing by checklist,"
Journal of Economic Theory,
Elsevier, vol. 147(1), pages 71-92.
- Michael Mandler & Paola Manzini & Marco Mariotti, 2008. "A Million Answers to Twenty Questions: Choosing by Checklist," Working Papers 622, Queen Mary University of London, School of Economics and Finance.
- Mandler, Michael & Manzini, Paola & Mariotti, Marco, 2008. "A Million Answers to Twenty Questions: Choosing by Checklist," IZA Discussion Papers 3377, Institute for the Study of Labor (IZA).
- Gil Kalai & Ariel Rubinstein & Ran Spiegler, 2002.
"Rationalizing Choice Functions By Multiple Rationales,"
Econometric Society, vol. 70(6), pages 2481-2488, November.
- Gil Kalai & Ariel Rubenstein & Ran Spiegler, 2001. "Rationalizing Choice Functions by Multiple Rationales," Economics Working Papers 0010, Institute for Advanced Study, School of Social Science.
- Gil Kalai & Ariel Rubinstein & Ran Spiegler, 2001. "Rationalizing Choice Functions by Multiple Rationales," Discussion Paper Series dp278, The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem.
- Matthew Rabin, 2006.
"A Model of Reference-Dependent Preferences,"
The Quarterly Journal of Economics,
MIT Press, vol. 121(4), pages 1133-1165, November.
- Botond Koszegi & Matthew Rabin, 2005. "A Model of Reference-Dependent Preferences," Levine's Bibliography 784828000000000341, UCLA Department of Economics.
- Botond Koszegi & Matthew Rabin, 2004. "A Model of Reference-Dependent Preferences," Method and Hist of Econ Thought 0407001, EconWPA.
- Koszegi, Botond & Rabin, Matthew, 2004. "A Model of Reference-Dependent Preferences," Department of Economics, Working Paper Series qt0w82b6nm, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- García-Sanz, María D. & Alcantud, José Carlos R., 2010. "Rational choice by two sequential criteria," MPRA Paper 21487, University Library of Munich, Germany.
- Daniel Kahneman & Jack L. Knetsch & Richard H. Thaler, 1991. "Anomalies: The Endowment Effect, Loss Aversion, and Status Quo Bias," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 193-206, Winter.
- Bossert, Walter & Sprumont, Yves & Suzumura, Kotaro, 2002.
124, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
- Walter BOSSERT & Yves SPRUMONT & Kotaro SUZUMURA, 2002. "Maximal-Element Rationalizability," Cahiers de recherche 16-2002, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- BOSSERT, Walter & SPRUMONT, Yves & SUZUMURA, Kotaro, 2002. "Maximal-Element Rationalizability," Cahiers de recherche 2002-16, Universite de Montreal, Departement de sciences economiques.
- Jose Apesteguia & Miguel Angel Ballester, 2007.
"A Theory of Reference-Dependent Behavior,"
323, Barcelona Graduate School of Economics.
- Jose Apesteguia & Miguel A. Ballester, 2007. "A theory of reference-dependent behavior," Economics Working Papers 1056, Department of Economics and Business, Universitat Pompeu Fabra.
- José Apesteguía & Miguel A. Ballester, 2004. "A Theory Of Reference-Dependent Beavior," Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra 0402, Departamento de Economía - Universidad Pública de Navarra.
- de Clippel, Geoffroy & Eliaz, Kfir, 2009.
"Reason-Based Choice: A Bargaining Rationale for the Attraction and Compromise Effects,"
CEPR Discussion Papers
7414, C.E.P.R. Discussion Papers.
- de Clippel, Geoffroy & Eliaz, Kfir, 2012. "Reason-based choice: a bargaining rationale for the attraction and compromise effects," Theoretical Economics, Econometric Society, vol. 7(1), January.
- Geoffroy de Clippel & Kfir Eliaz, 2009. "Reason-Based Choice: A Bargaining Rationale for the Attraction and Compromise Effects," Working Papers 2009-4, Brown University, Department of Economics.
- Masatlioglu, Yusufcan & Ok, Efe A., 2005. "Rational choice with status quo bias," Journal of Economic Theory, Elsevier, vol. 121(1), pages 1-29, March.
- Tim Beatty & Ian Crawford, 2010.
"How demanding is the revealed preference approach to demand,"
CeMMAP working papers
CWP17/10, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- Timothy K. M. Beatty & Ian A. Crawford, 2011. "How Demanding Is the Revealed Preference Approach to Demand?," American Economic Review, American Economic Association, vol. 101(6), pages 2782-95, October.
- Bossert, W. & Sprumont, Y., 2001.
Cahiers de recherche
2001-01, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- Federico Echenique & Sangmok Lee & Matthew Shum, 2011. "The Money Pump as a Measure of Revealed Preference Violations," Journal of Political Economy, University of Chicago Press, vol. 119(6), pages 1201 - 1223.
- Mark Dean & Daniel Martin, 2011. "Testing for Rationality with Consumption Data: Demographics and Heterogeneity," Working Papers 2011-11, Brown University, Department of Economics.
- Syngjoo Choi & Shachar Kariv & Wieland Müller & Dan Silverman, 2011.
"Who Is (More) Rational?,"
NBER Working Papers
16791, National Bureau of Economic Research, Inc.
- Manzini, Paola & Mariotti, Marco, 2009.
"Choice by Lexicographic Semiorders,"
IZA Discussion Papers
4046, Institute for the Study of Labor (IZA).
- Paola Manzini & Marco Mariotti, 2007. "Sequentially Rationalizable Choice," American Economic Review, American Economic Association, vol. 97(5), pages 1824-1839, December.
- Raphaël Giraud, 2012. "Money matters: an axiomatic theory of the endowment effect," Economic Theory, Springer, vol. 50(2), pages 303-339, June.
- Yusufcan Masatlioglu & Daisuke Nakajima & Erkut Ozbay, 2009.
NajEcon Working Paper Reviews
- Christopher J. Tyson, 2012.
"Behavioral Implications of Shortlisting Procedures,"
697, Queen Mary University of London, School of Economics and Finance.
- Christopher Tyson, 2013. "Behavioral implications of shortlisting procedures," Social Choice and Welfare, Springer, vol. 41(4), pages 941-963, October.
- Robin M. Hogarth & Natalia Karelaia, 2005. "Simple Models for Multiattribute Choice with Many Alternatives: When It Does and Does Not Pay to Face Trade-offs with Binary Attributes," Management Science, INFORMS, vol. 51(12), pages 1860-1872, December.
- Michael Mandler, 2004. "Status quo maintenance reconsidered: changing or incomplete preferences?," Economic Journal, Royal Economic Society, vol. 114(499), pages F518-F535, November.
- Sagi, Jacob S., 2006. "Anchored preference relations," Journal of Economic Theory, Elsevier, vol. 130(1), pages 283-295, September.
- Xu, Yongsheng & Zhou, Lin, 2007. "Rationalizability of choice functions by game trees," Journal of Economic Theory, Elsevier, vol. 134(1), pages 548-556, May.
- Ehlers, Lars & Sprumont, Yves, 2008. "Weakened WARP and top-cycle choice rules," Journal of Mathematical Economics, Elsevier, vol. 44(1), pages 87-94, January.
- Paola Manzini & Marco Mariotti, 2012. "Categorize Then Choose: Boundedly Rational Choice And Welfare," Journal of the European Economic Association, European Economic Association, vol. 10(5), pages 1141-1165, October.
When requesting a correction, please mention this item's handle: RePEc:eee:gamebe:v:77:y:2013:i:1:p:90-99. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.