Rationalizing Choice with Multi-Self Models
Abstract
This paper studies a class of multi-self decision-making models proposed in economics,
psychology, and marketing. In this class, choices arise from the set-dependent aggregation
of a collection of utility functions, where the aggregation procedure satisfies some
simple properties. We propose a method for characterizing the extent of irrationality
in a choice behavior, and use this measure to provide a lower bound on the set of
choice behaviors that can be rationalized with n utility functions. Under an additional
assumption (scale-invariance), we show that generically at most five "reasons" are
needed for every "mistake."
Type
Journal articlePermalink
https://hdl.handle.net/10161/13195Collections
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Show full item recordScholars@Duke
Attila Ambrus
Professor of Economics
Professor Ambrus’ research focuses on a broad range of subjects including game theory,
experimental economics, microeconomic theory, industrial organization, political economics,
development economics and economic history. He has received various grants from the
National Science Foundation. His most recent work has been published in the American
Economic Review, the Quarterly Journal of Economics, Econometrica, and Theoretical
Economics.
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