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Reason-based choice and context-dependence: an explanatory framework

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  • Dietrich, Franz
  • List, Christian

Abstract

We introduce a “reason-based” framework for explaining and predicting individual choices. The key idea is that a decision-maker focuses on some but not all properties of the options and chooses an option whose “motivationally salient” properties he/she most prefers. Reason-based explanations can capture two kinds of contextdependent choice: (i) the motivationally salient properties may vary across choice contexts, and (ii) they may include “context-related” properties, not just “intrinsic” properties of the options. Our framework allows us to explain boundedly rational and sophisticated choice behaviour. Since properties can be recombined in new ways, it also offers resources for predicting choices in unobserved contexts.

Suggested Citation

  • Dietrich, Franz & List, Christian, 2016. "Reason-based choice and context-dependence: an explanatory framework," LSE Research Online Documents on Economics 64219, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:64219
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    File URL: http://eprints.lse.ac.uk/64219/
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    References listed on IDEAS

    as
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    20. Dietrich, Franz & List, Christian, 2016. "Mentalism Versus Behaviourism In Economics: A Philosophy-Of-Science Perspective," Economics and Philosophy, Cambridge University Press, vol. 32(2), pages 249-281, July.
    21. Yusufcan Masatlioglu & Daisuke Nakajima & Erkut Y. Ozbay, 2012. "Revealed Attention," American Economic Review, American Economic Association, vol. 102(5), pages 2183-2205, August.
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    Citations

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    Cited by:

    1. Franz Dietrich & Antonios Staras & Robert Sugden, 2021. "Savage’s response to Allais as Broomean reasoning," Journal of Economic Methodology, Taylor & Francis Journals, vol. 28(2), pages 143-164, April.
    2. Guilhem Lecouteux & Ivan Mitrouchev, 2021. "The "View from Manywhere": Normative Economics with Context-Dependent Preferences," GREDEG Working Papers 2021-19, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    3. Gold, Natalie, 2020. "How should we reconcile self-regarding and pro-social motivations? A renaissance of “Das Adam Smith Problem”," LSE Research Online Documents on Economics 109218, London School of Economics and Political Science, LSE Library.
    4. repec:hal:wpaper:halshs-01249632 is not listed on IDEAS
    5. Natalie Gold, 2019. "The limits of commodification arguments: Framing, motivation crowding, and shared valuations," Politics, Philosophy & Economics, , vol. 18(2), pages 165-192, May.
    6. Dino Borie & Dorian Jullien, 2019. "Description-dependent Choices," Working Papers halshs-01651086, HAL.
    7. Kadziński, Miłosz & Ghaderi, Mohammad & Dąbrowski, Maciej, 2020. "Contingent preference disaggregation model for multiple criteria sorting problem," European Journal of Operational Research, Elsevier, vol. 281(2), pages 369-387.
    8. Borie, Dino & Jullien, Dorian, 2020. "Description-dependent preferences," Journal of Economic Psychology, Elsevier, vol. 81(C).
    9. Dietrich, Franz, 2018. "Savage's theorem under changing awareness," Journal of Economic Theory, Elsevier, vol. 176(C), pages 1-54.
    10. Gold, Natalie, 2019. "The limits of commodification arguments: framing, motivation crowding, and shared valuations," LSE Research Online Documents on Economics 109238, London School of Economics and Political Science, LSE Library.
    11. Olivier Cailloux & Yves Meinard, 2020. "A formal framework for deliberated judgment," Theory and Decision, Springer, vol. 88(2), pages 269-295, March.
    12. Boissonnet, Niels & Ghersengorin, Alexis & Gleyze, Simon, 2020. "Revealed Deliberate Preference Changes," MPRA Paper 101756, University Library of Munich, Germany.
    13. Boissonnet, Niels & Ghersengorin, Alexis & Gleyze, Simon, 2023. "Revealed deliberate preference change," Games and Economic Behavior, Elsevier, vol. 142(C), pages 357-367.
    14. repec:hal:pseose:halshs-01249632 is not listed on IDEAS
    15. Niels Boissonnet & Alexis Ghersengorin & Simon Gleyze, 2022. "Revealed Deliberate Preference Change," Working Papers hal-03672734, HAL.
    16. Jiapeng Liu & Miłosz Kadziński & Xiuwu Liao, 2023. "Modeling Contingent Decision Behavior: A Bayesian Nonparametric Preference-Learning Approach," INFORMS Journal on Computing, INFORMS, vol. 35(4), pages 764-785, July.
    17. Franz Dietrich & Antonios Staras & Robert Sugden, 2021. "Savage’s response to Allais as Broomean reasoning," Journal of Economic Methodology, Taylor & Francis Journals, vol. 28(2), pages 143-164, April.
    18. Dietrich, Franz & List, Christian, 2016. "Mentalism Versus Behaviourism In Economics: A Philosophy-Of-Science Perspective," Economics and Philosophy, Cambridge University Press, vol. 32(2), pages 249-281, July.
    19. Guilhem Lecouteux & Ivan Mitrouchev, 2022. "Preference purification in behavioural welfare economics: an impossibility result," Working Papers hal-03791972, HAL.
    20. Dorian Jullien, 2016. "All Frames Created Equal are Not Identical: On the Structure of Kahneman and Tversky's Framing Effects," GREDEG Working Papers 2016-17, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    21. Mattauch, Linus & Hepburn, Cameron, 2016. "Climate policy when preferences are endogenous – and sometimes they are," INET Oxford Working Papers 2016-04, Institute for New Economic Thinking at the Oxford Martin School, University of Oxford.

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    More about this item

    Keywords

    rational choice; reasons; context-dependence; bounded and sophisticated rationality; prediction of choice;
    All these keywords.

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics

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