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Reason-based rationalization

Dietrich, Franz and List, Christian (2014) Reason-based rationalization. Theoretical Economics, TE/2014/565. The London School of Economics and Political Science, Suntory and Toyota International Centres for Economics and Related Disciplines, London, UK.

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Abstract

“Reason-based rationalizations” explain an agent's choices by specifying which properties of the options or choice context he/she cares about (the “motivationally salient properties”) and how he/she cares about these properties the “fundamental preference relation”). We characterize the choice-behavioural implications of reason-based rationalizability and identify two kinds of context-dependent motivation in a reason-based agent: he/she may (i) care about different properties in different contexts and (ii) care not only about properties of the options, but also about properties relating to the context. Reason-based rationalizations can explain non-classical choice behaviour, including boundedly rational and sophisticated rational behaviour, and predict choices in unobserved contexts, an issue neglected in standard choice theory.

Item Type: Monograph (Technical Report)
Official URL: http://sticerd.lse.ac.uk/
Additional Information: © 2014 The Authors
Library of Congress subject classification: H Social Sciences > HM Sociology
Sets: Research centres and groups > Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD)
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Identification Number: TE/2014/565
Date Deposited: 24 Jul 2014 11:04
URL: http://eprints.lse.ac.uk/58213/

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