Au, Pak Hung and Kawai, Keiichi (2011): Sequentially Rationalizable Choice with Transitive Rationales. Forthcoming in: Games and Economic Behavior
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In this note, we analyze a sequentially rationalizable choice model with a transitive rationale and a standard preference. The model in this note is more restrictive than the Rational Shortlist Method (RSM) model which is proposed in Manzini and Mariotti (2007) to capture cyclic behavior. Yet, a decision maker in our model exhibits cyclic behavior in general. We prove that the cyclicity of an indirectly revealed preference is exactly what distinguishes the RSM framework (a sequential choice model with a non-standard preference) from our transitive-RSM framework (a sequential choice model with a standard preference). We also provide a partial identiﬁcation result on the representation.
|Item Type:||MPRA Paper|
|Original Title:||Sequentially Rationalizable Choice with Transitive Rationales|
|Keywords:||Sequentially rationalizable choice, Rationalization|
|Subjects:||D - Microeconomics > D0 - General > D01 - Microeconomic Behavior: Underlying Principles|
|Depositing User:||Keiichi Kawai|
|Date Deposited:||19. Mar 2011 19:16|
|Last Modified:||17. Feb 2013 06:57|
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