Rationalizing Choice with Multi-Self Models
This paper studies a class of multi-self decision-making models proposed in economics, psychology, and marketing. In this class, choices arise from the set-dependent aggregation of a collection of utility functions, where the aggregation procedure satisfies some simple properties. We propose a method for characterizing the extent of irrationality in a choice behavior, and use this measure to provide a lower bound on the set of choice behaviors that can be rationalized with n utility functions. Under an additional assumption (scale-invariance), we show that generically at most five "reasons" are needed for every "mistake."
|Date of creation:||Jul 2008|
|Date of revision:||May 2012|
|Publication status:||Published in Economic Journal (June 2015), 125(585): 1136-1156|
|Note:||Includes supplemental material|
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