Gerasimou, Georgios (2009): Consumer theory with bounded rational preferences.
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The neoclassical consumer maximizes utility and makes choices by completely preordering the feasible alternatives and weighing when indifferent. The consumer studied in this paper chooses by weighing when indifferent and also when indecisive, without necessarily preordering the alternatives or exhausting her budget. Preferences therefore need not be complete, transitive or non-satiated but are assumed strictly convex and "adaptive". The latter axiom is new and parallels that of ambiguity aversion in choice under uncertainty.
|Item Type:||MPRA Paper|
|Original Title:||Consumer theory with bounded rational preferences|
|Keywords:||preferences: incomplete, intransitive, convex, adaptive; representation; demand.|
|Subjects:||D - Microeconomics > D0 - General > D03 - Behavioral Economics; Underlying Principles
D - Microeconomics > D1 - Household Behavior and Family Economics > D11 - Consumer Economics: Theory
D - Microeconomics > D0 - General > D01 - Microeconomic Behavior: Underlying Principles
|Depositing User:||Georgios Gerasimou|
|Date Deposited:||16. Nov 2009 15:21|
|Last Modified:||12. Feb 2013 02:38|
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