CFDP 1670
Rationalizing Choice with Multi-Self Models
Author(s):Publication Date: June 2008
Update Date: July 2011May 2012
Pages: 41
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.”
Supplemental Material: Supplemental material
Keywords:
Multi-self models, Index of irrationality, IIA violations, Rationalizability
JEL Classification Codes: D11, D13, D71
See CFP: 1480