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Choice by Contextual Associations

Author

Listed:
  • Jose Apesteguia
  • Andrea Salvanti

Abstract

Choice behavior is significantly influenced by context. Evidence from cognitive science suggests that this dependency may be driven by associations. In this paper, we propose a choice-theoretic model of contextual associations. We formalize contexts as sets of topics. This allows us to define associations as links between alternatives and topics that directly impact utility. We characterize the model's empirical content, establish conditions for identification, analyze its comparative statics, and propose several extensions. To demonstrate the model's portability, we apply it to a setting of probabilistic voting, providing a new, association-based mechanism for political polarization.

Suggested Citation

  • Jose Apesteguia & Andrea Salvanti, 2026. "Choice by Contextual Associations," Working Papers 1606, Barcelona School of Economics.
    • Handle: RePEc:bge:wpaper:1606
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    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D60 - Microeconomics - - Welfare Economics - - - General

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