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Article
Categorize Then Choose: Boundedly Rational Choice and Welfare
Journal of the European Economic Association (2012)
  • Paola Manzini, University of St Andrews
  • Marco Mariotti
Abstract
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.
Publication Date
2012
DOI
10.1111/j.1542-4774.2012.01078.x
Publisher Statement
http://onlinelibrary.wiley.com/doi/10.1111/j.1542-4774.2012.01078.x/abstract
Citation Information
Paola 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/
Creative Commons license
Creative Commons License
This work is licensed under a Creative Commons CC_BY-NC-ND International License.