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.
|Date of creation:||Aug 2009|
|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.:
- Lombardi, Michele, 2009.
"Reason-based choice correspondences,"
Mathematical Social Sciences,
Elsevier, vol. 57(1), pages 58-66, January.
- Attila Ambrus & Kareen Rozen, 2015.
"Rationalising Choice with Multi‐self Models,"
Royal Economic Society, vol. 125(585), pages 1136-1156, 06.
- Attila Ambrus & Kareen Rozen, 2012. "Rationalizing Choice with Multi-Self Models," Working Papers 12-11, Duke University, Department of Economics.
- Attila Ambrus & Kareen Rozen, 2012. "Rationalizing Choice with Multi-Self Models," Levine's Working Paper Archive 786969000000000512, David K. Levine.
- 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.
- Kfir Eliaz & Ran Spiegler, 2006.
"Contracting with Diversely Naive Agents,"
Review of Economic Studies,
Oxford University Press, vol. 73(3), pages 689-714.
- Nejat Anbarci, 1993. "Noncooperative Foundations of the Area Monotonic Solution," The Quarterly Journal of Economics, Oxford University Press, vol. 108(1), pages 245-258.
- Özgür Kıbrıs & Murat Sertel, 2007. "Bargaining over a finite set of alternatives," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 28(3), pages 421-437, April.
- 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.
- 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 Rubenstein & Ran Spiegler, 2001. "Rationalizing Choice Functions by Multiple Rationales," Economics Working Papers 0010, Institute for Advanced Study, School of Social Science.
- Christopher P. Chambers & Federico Echenique, 2015.
"The Core Matchings of Markets with Transfers,"
American Economic Journal: Microeconomics,
American Economic Association, vol. 7(1), pages 144-164, February.
- Yusufcan Masatlioglu & Daisuke Nakajima & Erkut Ozbay, 2009.
NajEcon Working Paper Reviews
- 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).
- 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.
- Pierre-André Chiappori & Olivier Donni, 2006. "Learning from a Piece of Pie: the Empirical Content of Nash Bargaining," Cahiers de recherche 0619, CIRPEE.
- 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.
- Kfir Eliaz & Michael Richter & Ariel Rubinstein, 2011. "Choosing the two finalists," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 46(2), pages 211-219, February.
- Green, Jerry & Hojman, Daniel, 2007. "Choice, Rationality and Welfare Measurement," Working Paper Series rwp07-054, Harvard University, John F. Kennedy School of Government.
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: ()
If references are entirely missing, you can add them using this form.