Tradeoffs and Comparison Complexity
Fuente:
arXiv
Guardado en:
| Autores principales: | , |
|---|---|
| Formato: | Preprint |
| Publicado: |
2024
|
| Materias: | |
| Acceso en línea: | |
| Etiquetas: |
Agregar Etiqueta
Sin Etiquetas, Sea el primero en etiquetar este registro!
|
| _version_ | 1866917370415546368 |
|---|---|
| author | Shubatt, Cassidy Yang, Jeffrey |
| author_facet | Shubatt, Cassidy Yang, Jeffrey |
| contents | Using theory and experiments, this paper shows that the difficulty of making tradeoffs offers a parsimonious explanation for a wide range of behavioral phenomena. We develop a model of imprecise comparisons applicable to multiattribute, lottery, and intertemporal choice, which formalizes the idea that comparisons are difficult when they involve pronounced tradeoffs. Our model rationalizes a range of documented regularities, such as context effects, preference reversals, apparent probability weighting and hyperbolic discounting, and generates novel implications for behavior. We assess the explanatory power of our model in a series of choice experiments. Our model explains a large share of the variation in choice inconsistency across problems, and we document that manipulating tradeoffs reverses classic behavioral regularities, in line with its predictions. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2401_17578 |
| institution | arXiv |
| publishDate | 2024 |
| record_format | arxiv |
| spellingShingle | Tradeoffs and Comparison Complexity Shubatt, Cassidy Yang, Jeffrey General Economics Economics 91-05 (Primary) 91B06 (Secondary) Using theory and experiments, this paper shows that the difficulty of making tradeoffs offers a parsimonious explanation for a wide range of behavioral phenomena. We develop a model of imprecise comparisons applicable to multiattribute, lottery, and intertemporal choice, which formalizes the idea that comparisons are difficult when they involve pronounced tradeoffs. Our model rationalizes a range of documented regularities, such as context effects, preference reversals, apparent probability weighting and hyperbolic discounting, and generates novel implications for behavior. We assess the explanatory power of our model in a series of choice experiments. Our model explains a large share of the variation in choice inconsistency across problems, and we document that manipulating tradeoffs reverses classic behavioral regularities, in line with its predictions. |
| title | Tradeoffs and Comparison Complexity |
| topic | General Economics Economics 91-05 (Primary) 91B06 (Secondary) |
| url | https://arxiv.org/abs/2401.17578 |