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) |
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| Official URL: | http://sticerd.lse.ac.uk/ |
| Additional Information: | © 2014 The Authors |
| Library of Congress subject classification: | H Social Sciences > HM Sociology |
| Sets: | Departments > Government Departments > Philosophy, Logic and Scientific Method Research centres and groups > Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD) |
| Identification Number: | TE/2014/565 |
| Date Deposited: | 24 Jul 2014 11:04 |
| URL: | http://eprints.lse.ac.uk/58213/ |
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