Asymmetric dominance, deferral and status quo bias in a behavioral model of choice
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This paper proposes and axiomatically characterizes a model of choice that builds on the criterion of partial dominance and allows for two types of avoidant behavior: *choice deferral* and *status quo bias*. These phenomena are explained in a unified way that allows for a clear theoretical distinction between them to be made. The model also explains the *strengthening of the attraction effect* that has been observed when deferral is permissible. Unlike other models of status quo biased behavior, the one analyzed in this paper builds on a *unique*, reference-independent preference relation that is acyclic and generally incomplete. When this relation is complete, the model reduces to rational choice.
Gerasimou , G 2016 , ' Asymmetric dominance, deferral and status quo bias in a behavioral model of choice ' Theory and Decision , vol. 80 , no. 2 , pp. 295-312 . DOI: 10.1007/s11238-015-9499-7
Theory and Decision
© 2015, Springer Science+Business Media New York. This work is made available online in accordance with the publisher’s policies. This is the author created, accepted version manuscript following peer review and may differ slightly from the final published version. The final published version of this work is available at DOI: 10.1007/s11238-015-9499-7
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