State dependent choice

Manzini, Paola and Mariotti, Marco (2015) State dependent choice. Social Choice and Welfare, 45 (2). pp. 239-268. ISSN 0176-1714

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Abstract

We propose a theory of choices that are influenced by the psychological state of the agent. The central hypothesis is that the psychological state controls the urgency of the attributes sought by the decision maker in the available alternatives. While state dependent choice is less restricted than rational choice, our model does have empirical content, expressed by simple "revealed preference" type of constraints on observable choice data. We demonstrate the applicability of simple versions of the framework to economic contexts. We show in particular that it can explain widely researched anomalies in the labour supply of taxi drivers.

Item Type: Article
Schools and Departments: School of Business, Management and Economics > Economics
Subjects: H Social Sciences > HB Economic theory. Demography > HB0131 Methodology > HB0135 Mathematical economics. Quantitative methods Including econometrics, input-output analysis, game theory
Depositing User: Professor Paola Manzini
Date Deposited: 07 Nov 2017 11:47
Last Modified: 07 Nov 2017 11:47
URI: http://sro.sussex.ac.uk/id/eprint/71036

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