A salience theory of choice errors

Arbeitspapier

We study a psychologically based foundation for choice errors. The decision maker applies a preference ranking after forming a 'consideration set' prior to choosing an alternative. Membership of the consideration set is determined both by the alternative specific salience and by the rationality of the agent (his general propensity to consider all alternatives). The model turns out to include a logit formulation as a special case. In general, it has a rich set of implications both for exogenous parameters and for a situation in which alternatives can affect their own salience (salience games). Such implications are relevant to assess the link between 'revealed' preferences and 'true' preferences: for example, less rational agents may paradoxically express their preference through choice more truthfully than more rational agents.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IZA Discussion Papers ; No. 5006

Klassifikation und Themen

• Klassifikation: Wirtschaft
• Thema: Discrete choice ; random utility ; logit model ; consideration sets ; bounded rationality ; Diskrete Entscheidung ; Persönlichkeitspsychologie ; Beschränkte Rationalität ; Präferenztheorie ; Offenbarte Präferenzen ; Logit-Modell ; Theorie

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Manzini, Paola ; Mariotti, Marco
• Ereignis: Veröffentlichung
• (wer): Institute for the Study of Labor (IZA)
• (wo): Bonn
• (wann): 2010

Weitere Informationen

• Handle: http://hdl.handle.net/10419/36879
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ