Deviations of rational choice: an integrative explanation of the endowment and several context effects.

ABSTRACT: People's choices are often found to be inconsistent with the assumptions of rational choice theory. Over time, several probabilistic models have been proposed that account for such deviations from rationality. However, these models have become increasingly complex and are often limited to particular choice phenomena. Here we introduce a network approach that explains a broad set of choice phenomena. We demonstrate that this approach can be used to compare different choice theories and integrates several choice mechanisms from established models. A basic setup implements bounded rationality, loss aversion, and inhibition in a natural fashion, which allows us to predict the occurrence of well-known choice phenomena, such as the endowment effect and the similarity, attraction, compromise, and

SUBMITTER: Kruis J 

PROVIDER: S-EPMC7529946 | biostudies-literature | 2020 Oct

REPOSITORIES: biostudies-literature