Gerasimou, Georgios (2009): Consumer theory with bounded rational preferences.

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Abstract
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 nonsatiated 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 
Language:  English 
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 
Item ID:  18673 
Depositing User:  Georgios Gerasimou 
Date Deposited:  16. Nov 2009 15:21 
Last Modified:  12. Feb 2013 02:38 
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URI:  http://mpra.ub.unimuenchen.de/id/eprint/18673 