Gerasimou, Georgios (2012): Asymmetric Dominance, Deferral and Status Quo Bias in a Theory of Choice with Incomplete Preferences.
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This paper proposes a model of individual choice that does not assume completeness of the decision maker's preferences. The model helps explain in a natural way, and within a unied framework of choice in the presence of preference-incomparable options, three distinct behavioural phenomena: the asymmetric dominance/attraction effect, choice deferral and status quo bias. A decision maker who follows the decision rule featured in the model chooses an alternative from a menu if it is totally preference-undominated in that menu and at the same time is also partially preference-dominant. In situations where the decision maker's preferences are complete the model delivers strict utility maximisation.
|Item Type:||MPRA Paper|
|Original Title:||Asymmetric Dominance, Deferral and Status Quo Bias in a Theory of Choice with Incomplete Preferences|
|Keywords:||Attraction Effect; Choice Deferral; Status Quo Bias; Incomplete Preferences; Bounded Rationality|
|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:||17. Jul 2012 08:37|
|Last Modified:||16. Feb 2013 03:34|
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