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Main Author: Seror, Avner
Format: Preprint
Published: 2026
Subjects:
Online Access:https://arxiv.org/abs/2601.02964
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author Seror, Avner
author_facet Seror, Avner
contents Behavioral theories rest on parsimony: a small number of mechanisms organizing many decisions. We define a Maximum Rule Concentration Index that measures how parsimoniously a dataset of risky choices can be organized through a library of simple, parameter-free decision rules drawn from canonical behavioral theories: salience, regret, disappointment, modal-payoff focusing, extreme-outcome screening, and limited attention. Applied to three lottery-choice datasets, the data exhibit detectable parsimony: for a majority of subjects, observed concentration exceeds what standard utility models generate on the same menus. The concentration organizes around salience thinking, modal-payoff focusing, and regret.
format Preprint
id arxiv_https___arxiv_org_abs_2601_02964
institution arXiv
publishDate 2026
record_format arxiv
spellingShingle How Many Mechanisms? Measuring Parsimony in Risky Choice
Seror, Avner
General Economics
Economics
Behavioral theories rest on parsimony: a small number of mechanisms organizing many decisions. We define a Maximum Rule Concentration Index that measures how parsimoniously a dataset of risky choices can be organized through a library of simple, parameter-free decision rules drawn from canonical behavioral theories: salience, regret, disappointment, modal-payoff focusing, extreme-outcome screening, and limited attention. Applied to three lottery-choice datasets, the data exhibit detectable parsimony: for a majority of subjects, observed concentration exceeds what standard utility models generate on the same menus. The concentration organizes around salience thinking, modal-payoff focusing, and regret.
title How Many Mechanisms? Measuring Parsimony in Risky Choice
topic General Economics
Economics
url https://arxiv.org/abs/2601.02964