Reason-Based Choice: A Bargaining Rationale for the Attraction and Compromise Effects
This paper proposes a model of boundedly rational choice that explains the well known attraction and compromise effects. Choices in our model are interpreted as a cooperative solution to a bargaining problem among an individual’s conflicting dual selves. We axiomatically characterize a unique bargaining solution that captures both effects when the selves’ preferences are known. We then provide a revealed preference foundation to our solution, and characterize the extent to which these two underlying preference relations can be uniquely identified.
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.
|Date of creation:||Aug 2009|
|Date of revision:|
|Contact details of provider:|| Postal: Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ.|
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
|Order Information:|| Email: |
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.:
- Huber, Joel & Payne, John W & Puto, Christopher, 1982. " Adding Asymmetrically Dominated Alternatives: Violations of Regularity and the Similarity Hypothesis," Journal of Consumer Research, Oxford University Press, vol. 9(1), pages 90-98, June.
- Christopher P. Chambers & Federico Echenique, 2015.
"The Core Matchings of Markets with Transfers,"
American Economic Journal: Microeconomics,
American Economic Association, vol. 7(1), pages 144-64, February.
- 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, 2002. "Rationalizing Choice Functions By Multiple Rationales," Econometrica, Econometric Society, vol. 70(6), pages 2481-2488, November.
- 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.
- 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.
- Green, Jerry & Hojman, Daniel, 2007. "Choice, Rationality and Welfare Measurement," Working Paper Series rwp07-054, Harvard University, John F. Kennedy School of Government.
- Pierre-André Chiappori & Olivier Donni, 2006.
"Learning from a Piece of Pie: the Empirical Content of Nash Bargaining,"
Cahiers de recherche
- Pierre-André Chiappori & Olivier Donni, 2005. "Learning From a Piece of Pie: The Empirical Content of Nash Bargaining," THEMA Working Papers 2006-07, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
- Chiappori, Pierre-André & Donni, Olivier, 2006. "Learning from a Piece of Pie: The Empirical Content of Nash Bargaining," IZA Discussion Papers 2128, Institute for the Study of Labor (IZA).
- Eliaz, Kfir & Spiegler, Ran, 2004.
"Contracting with Diversely Naive Agents,"
CEPR Discussion Papers
4573, C.E.P.R. Discussion Papers.
- Kfir Eliaz & Michael Richter & Ariel Rubinstein, 2011. "Choosing the two finalists," Economic Theory, Society for the Advancement of Economic Theory (SAET), vol. 46(2), pages 211-219, February.
- Yusufcan Masatlioglu & Daisuke Nakajima & Erkut Y. Ozbay, 2012.
American Economic Review,
American Economic Association, vol. 102(5), pages 2183-2205, August.
- Nejat Anbarci, 1993. "Noncooperative Foundations of the Area Monotonic Solution," The Quarterly Journal of Economics, Oxford University Press, vol. 108(1), pages 245-258.
- Michele Lombardi, 2007.
"Reason-Based Choice Correspondences,"
607, Queen Mary University of London, School of Economics and Finance.
- Özgür Kıbrıs & Murat Sertel, 2007. "Bargaining over a finite set of alternatives," Social Choice and Welfare, Springer, vol. 28(3), pages 421-437, April.
When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:7414. 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: ()The email address of this maintainer does not seem to be valid anymore. Please ask to update the entry or send us the correct email address
If references are entirely missing, you can add them using this form.