Reason-based rationalization

Dietrich, Franz and List, Christian ORCID: 0000-0003-1627-800X (2014) Reason-based rationalization. Theoretical Economics (TE/2014/565). 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 (Report)
Official URL:	http://sticerd.lse.ac.uk/
Additional Information:	© 2014 The Authors
Divisions:	Government Philosophy, Logic and Scientific Method STICERD
Subjects:	H Social Sciences > HM Sociology
Date Deposited:	24 Jul 2014 11:04
Last Modified:	13 Sep 2024 16:51
URI:	http://eprints.lse.ac.uk/id/eprint/58213

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