A simple model of two-stage choice
Data(s) |
12/02/2016
12/02/2016
01/12/2015
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Resumo |
I provide choice-theoretic foundations for a simple two-stage model, called transitive shortlist methods, where choices are made by sequentially by applying a pair of transitive preferences (or rationales) to eliminate inferior alternatives. Despite its simplicity, the model accommodates a wide range of choice phenomena including the status quo bias, framing, homophily, compromise, and limited willpower. I establish that the model can be succinctly characterized in terms of some well-documented context effects in choice. I also show that the underlying rationales are straightforward to determine from readily observable reversals in choice. Finally, I highlight the usefulness of these results in a variety of applications. |
Identificador | |
Idioma(s) |
en |
Relação |
Cahier de recherche #2016-01; |
Palavras-Chave | #Shortlisting #Axiomatization #Revealed preference #Identification |
Tipo |
Article |