Categorize Then Choose: Boundedly Rational Choice and WelfareJournal of the European Economic Association (2012)
We propose a boundedly rational model of choice where agents cate- gorize alternatives before choosing. The model explains some behavioral anomalies, and it is fully characterised by a property of choice data: a cate- gorizer 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.
Citation InformationPaola Manzini and Marco Mariotti. "Categorize Then Choose: Boundedly Rational Choice and Welfare" Journal of the European Economic Association Vol. 10 Iss. 5 (2012) p. 1141 - 1165
Available at: http://works.bepress.com/paola-manzini/8/
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