Abstract
An individual displays various preference orderings in different payoff-irrelevant circumstances. It is assumed that the variation in the observed preference orderings is the outcome of some cognitive process that distorts the underlying preferences of the individual. We introduce a framework for eliciting the individual's underlying preferences in such cases and then demonstrate it for two cognitive processes-satisficing and small assessment errors.
Original language | English (US) |
---|---|
Pages (from-to) | 375-387 |
Number of pages | 13 |
Journal | Review of Economic Studies |
Volume | 79 |
Issue number | 1 |
DOIs | |
State | Published - Jan 1 2012 |
Keywords
- Behavioural data set
- Bounded rationality
- Preferences
- Welfare analysis
ASJC Scopus subject areas
- Economics and Econometrics