Choice by Lexicographic SemiordersTheoretical Economics (2012)
In Tversky's (1969) model of a lexicographic semiorder, preference is generated by the sequential application of numerical criteria, by declaring an alternative x better than an alternative y if the first criterion that distinguishes between x and y ranks x higher than y by an amount exceeding a fixed threshold. We generalize this idea to a fully-fledged model of boundedly rational choice. We explore the connection with sequential rationalizability of choice (Apesteguia and Ballester 2009, Manzini and Mariotti 2007), and we provide axiomatic characterizations of both models in terms of observable choice data.
- Lexicographic semiorders,
- bounded rationality,
- revealed preference,
Citation InformationPaola Manzini and Marco Mariotti. "Choice by Lexicographic Semiorders" Theoretical Economics Vol. 7 Iss. 1 (2012) p. 1 - 23
Available at: http://works.bepress.com/paola-manzini/3/
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