Kops, Christopher 
ORCID: 0000-0002-6673-175X
(2018).
(F)Lexicographic shortlist method.
Econ. Theory, 65 (1).
S. 79 - 98.
NEW YORK:
SPRINGER.
ISSN 1432-0479
Abstract
Standard rational choice relies on the assumption that a decision maker is certain about her preferences. The psychology literature, on the other hand, provides well-established evidence that consumers are often uncertain about the true value of alternatives. This is particularly so when alternatives have several attributes and focusing on different attributes shifts a decision maker's ranking of alternatives. In this paper, we propose and behaviorally characterize a new model of boundedly rational choice that formalizes these insights from psychology into a choice procedure. Simply put, our approach introduces menu dependence into the idea of lexicographic preferences. We study some of its properties and highlight how this procedure exacerbates any welfare judgments.
| Item Type: | Journal Article | ||||||||
| Creators: |
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| URN: | urn:nbn:de:hbz:38-200333 | ||||||||
| DOI: | 10.1007/s00199-016-1006-z | ||||||||
| Journal or Publication Title: | Econ. Theory | ||||||||
| Volume: | 65 | ||||||||
| Number: | 1 | ||||||||
| Page Range: | S. 79 - 98 | ||||||||
| Date: | 2018 | ||||||||
| Publisher: | SPRINGER | ||||||||
| Place of Publication: | NEW YORK | ||||||||
| ISSN: | 1432-0479 | ||||||||
| Language: | English | ||||||||
| Faculty: | Unspecified | ||||||||
| Divisions: | Unspecified | ||||||||
| Subjects: | no entry | ||||||||
| Uncontrolled Keywords: |
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| Refereed: | Yes | ||||||||
| URI: | http://kups.ub.uni-koeln.de/id/eprint/20033 |
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