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