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Categorize then choose: boundedly rational choice and welfare
journal contribution
posted on 2023-06-09, 08:41 authored by Paola Manzini, Marco MariottiWe propose a boundedly rational model of choice where agents categorize alternatives before choosing. The model explains some behavioral anomalies, and it is fully characterized by a property of choice data: a categorizer 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.
History
Publication status
- Published
File Version
- Published version
Journal
Journal of the European Economic AssociationISSN
1542-4766Publisher
Wiley-BlackwellExternal DOI
Issue
5Volume
10Page range
1141-1165Department affiliated with
- Economics Publications
Full text available
- No
Peer reviewed?
- Yes