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Choice by rejection

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  • Bhardwaj, Bhavook
  • Manocha, Kriti

Abstract

This paper introduces a model of decision making that formalizes the idea of rejection behavior using binary relations. We propose a two-stage choice procedure where a decision maker in the first stage rejects the minimal alternatives from any decision problem, resulting in a new type of consideration set—the rejection filter. In the second stage, the decision maker maximizes possibly a different binary relation to choose a unique alternative. We provide an axiomatic foundation of the rejection filter and the two-stage procedure. Next, we relate our findings to the existing literature and show that our model provides a novel explanation for the two-compromise and two-decoy effects.

Suggested Citation

  • Bhardwaj, Bhavook & Manocha, Kriti, 2025. "Choice by rejection," Journal of Mathematical Economics, Elsevier, vol. 120(C).
    • Handle: RePEc:eee:mateco:v:120:y:2025:i:c:s0304406825000849
    DOI: 10.1016/j.jmateco.2025.103167
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    JEL classification:

    • D0 - Microeconomics - - General
    • D9 - Microeconomics - - Micro-Based Behavioral Economics

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