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Partially dominant choice

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  • Georgios Gerasimou

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. Copyright Springer-Verlag Berlin Heidelberg 2016

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:p:127-145
    DOI: 10.1007/s00199-015-0869-8
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    References listed on IDEAS

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    Cited by:

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    2. Aguiar, Victor H., 2017. "Random categorization and bounded rationality," Economics Letters, Elsevier, vol. 159(C), pages 46-52.
    3. M. Ali Khan & Metin Uyanık, 0. "Topological connectedness and behavioral assumptions on preferences: a two-way relationship," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 0, pages 1-50.
    4. Barokas, Guy, 2017. "A taxonomy of rationalization by incomplete preferences," Economics Letters, Elsevier, vol. 159(C), pages 138-141.

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    More about this item

    Keywords

    Incomplete preferences; Partial dominance; Attraction/decoy effect; Rational choice; Context dependence; D01; D11;
    All these keywords.

    JEL classification:

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

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