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Partially dominant choice

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  • Georgios Gerasimou

    () (University of St Andrews)

Abstract

Abstract This paper proposes and analyzes a model of context-dependent choice with stable but incomplete preferences that is based on the idea of partial dominance: an alternative is chosen from a menu if it is not worse than anything in the menu and is also better than something else. This choice procedure provides a simple explanation of the attraction/decoy effect. It reduces to rational choice when preferences are complete in two ways that are made precise. Some preference identification and choice consistency properties associated with this model are analyzed, and certain ways in which its predictions differ from those of other recently proposed models of the attraction effect are also discussed.

Suggested Citation

  • Georgios Gerasimou, 2016. "Partially dominant choice," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 61(1), pages 127-145, January.
  • Handle: RePEc:spr:joecth:v:61:y:2016:i:1:d:10.1007_s00199-015-0869-8
    DOI: 10.1007/s00199-015-0869-8
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    Cited by:

    1. repec:spr:etbull:v:5:y:2017:i:2:d:10.1007_s40505-017-0113-8 is not listed on IDEAS
    2. repec:eee:ecolet:v:159:y:2017:i:c:p:138-141 is not listed on IDEAS
    3. Georgios Gerasimou, 2016. "Asymmetric dominance, deferral, and status quo bias in a behavioral model of choice," Theory and Decision, Springer, vol. 80(2), pages 295-312, February.
    4. repec:spr:joecth:v:65:y:2018:i:1:d:10.1007_s00199-016-1006-z is not listed on IDEAS
    5. Costa-Gomes, Miguel & Cueva, Carlos & Gerasimou, Georgios, 2014. "Choice, Deferral and Consistency," SIRE Discussion Papers 2015-17, Scottish Institute for Research in Economics (SIRE).
    6. repec:eee:ecolet:v:159:y:2017:i:c:p:46-52 is not listed on IDEAS
    7. Hassan Nosratabadi, 2017. "Referential Revealed Preference Theory," Departmental Working Papers 201705, Rutgers University, Department of Economics.
    8. Aguiar, Victor H., 2017. "Random categorization and bounded rationality," Economics Letters, Elsevier, vol. 159(C), pages 46-52.

    More about this item

    Keywords

    Incomplete preferences; Partial dominance; Attraction/decoy effect; Rational choice; Context dependence;

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory

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