Rational preference and rationalizable choice

Simone Cerreia-Vioglio, Alfio Giarlotta, Salvatore Greco, Fabio Maccheroni, Massimo Marinacci

Research output: Contribution to journalArticlepeer-review

114 Downloads (Pure)

Abstract

We study a decision maker characterized by two binary relations. The first reflects his judgments about well-being, his mental preferences. The second describes the decision maker’s choice behavior, his behavioral preferences. We propose axioms that describe a relation between these two preferences, so between mind and behavior, thus disentangling two different perspectives on preferences: a description of tastes (and attitudes) and a way to organize behavioral data. We obtain two representations: one in which mental preferences uniquely determine choice behavior, another for which mental preferences direct behavior but room remains for biases and framing effects. Our results also provide a foundation for a decision analysis procedure called robust ordinal regression and proposed by Greco et al. (Eur J Oper Res 191:416–436, 2008).
Original languageEnglish
JournalEconomic Theory
Early online date19 Oct 2018
DOIs
Publication statusEarly online - 19 Oct 2018

Keywords

  • WNU
  • mental preferences
  • behavioral preferences
  • robust ordinal regression

Fingerprint

Dive into the research topics of 'Rational preference and rationalizable choice'. Together they form a unique fingerprint.

Cite this