Partially dominant choice

Gerasimou, Georgios

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Date

01/2016

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Abstract

This paper proposes and analyzes a model of context-dependent choice with stable but incomplete preferences that is based on the idea of partial dominance: An alternative is chosen from a menu if it is not worse than anything in the menu and is also better than something else. This choice procedure provides a simple explanation of the attraction/decoy effect. It reduces to rational choice when preferences are complete in two ways that are made precise. Some preference identification and choice consistency properties associated with this model are analyzed, and certain ways in which its predictions differ from those of other recently proposed models of the attraction effect are also discussed.

Citation

Gerasimou , G 2016 , ' Partially dominant choice ' , Economic Theory , vol. 61 , no. 1 , pp. 127-145 . https://doi.org/10.1007/s00199-015-0869-8

Publication

Economic Theory

Status

Peer reviewed

DOI

https://doi.org/10.1007/s00199-015-0869-8

ISSN

0938-2259

Type

Journal article

Rights

(c) Copyright Springer-Verlag Berlin Heidelberg 2015. This is the author's final accepted manuscript of this article. The final publication is available at Springer via http://link.springer.com/article/10.1007/s00199-015-0869-8

Collections

University of St Andrews Research

URI

http://hdl.handle.net/10023/8427