Eliciting welfare preferences from behavioural data sets

Ariel Rubinstein*, Yuval Salant

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

76 Scopus citations

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 languageEnglish (US)
Pages (from-to)375-387
Number of pages13
JournalReview of Economic Studies
Volume79
Issue number1
DOIs
StatePublished - Jan 1 2012

Funding

Acknowledgment. tnqdeleteWe thank Ayala Arad, Doug Bernheim, Eddie Dekel, Jerry Green, Daniel Hojman, Tim Feddersen, Drew Fudenberg, Yusufcan Masatlioglu, Meg Meyer, Ron Siegel, Ran Spiegler, Rakesh Vohra, two anonymous referees, and seminar participants at Boston University, Hebrew University, Harvard University, New York University, Northwestern University, University of British Columbia, the Summer School on Welfare Economics and Philosophy at San-Sebastian (Spain, July 2009), and the European Summer Symposium in Economic Theory at Gerzensee (Switzerland, July 2010) for their comments. Rubinstein acknowledges support from the Israeli Science Foundation (259/08) and from the Foerder Institute for Economic Research.

Keywords

  • Behavioural data set
  • Bounded rationality
  • Preferences
  • Welfare analysis

ASJC Scopus subject areas

  • Economics and Econometrics

Fingerprint

Dive into the research topics of 'Eliciting welfare preferences from behavioural data sets'. Together they form a unique fingerprint.

Cite this