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Choice deferral, indecisiveness and preference for flexibility

Author

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  • Leonardo Pejsachowicz

    (Princeton University)

  • Séverine Toussaert

    (Department of Social Policy - LSE - London School of Economics and Political Science)

Abstract

In a standard model of menu choice, we examine the behavior of an agent who applies the following Cautious Deferral rule: "Whenever in doubt, don't commit; just leave options open." Our primitive is a complete preference relation ≽ that represents the agent's choice behavior. The agent's indecisiveness is captured by means of a possibly incomplete (but otherwise rational) preference relation . We ask when ≽ can be viewed as a Cautious Deferral completion of some incomplete . Under the independence and continuity assumptions commonly used in the menu choice literature, we find that even the smallest amount of indecisiveness is enough to force ≽, through the above deferral rule, to exhibit preference for flexibility on its entire domain. Thus we highlight a fundamental tension between non-monotonic preferences, such as preferences for self-control, and tendency to defer choice due to indecisiveness.

Suggested Citation

  • Leonardo Pejsachowicz & Séverine Toussaert, 2017. "Choice deferral, indecisiveness and preference for flexibility," Post-Print hal-02862199, HAL.
    • Handle: RePEc:hal:journl:hal-02862199
    DOI: 10.1016/j.jet.2017.05.001
    Note: View the original document on HAL open archive server: https://hal.science/hal-02862199
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    References listed on IDEAS

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    Cited by:

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