Work

Categorize Then Choose: Boundedly Rational Choice and Welfare

Year: 2012

Type: article

Abstract: We propose a boundedly rational model of choice where agents categorize alternatives before choosing. The model explains some behavioral anomalies, and it is fully characterized by a property of choice data: a categorizer can never exhibit certain patterns of “revealed preference reversals”. This model offers clues on the problem of making welfare judgements in the presence of boundedly rational agents.

Source: Journal of the European Economic Association

DOI: 10.1111/j.1542-4774.2012.01078.x

Authors: Paola Manzini, Marco Mariotti

Institution: University of St Andrews

Language: English

Topic: Decision-Making and Behavioral Economics

Subfield: General Decision Sciences

Field: Decision Sciences

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W1968409854

FWCI: 7.222

Cites: 76

Cited by: 176

Related to: 10