Choice with Endogenous Categorization

• 成果类型: Article
• 署名作者: Ellis, Andrew; Masatlioglu, Yusufcan
• 署名单位: University of London; London School Economics & Political Science; University System of Maryland; University of Maryland College Park
• 刊物名称: REVIEW OF ECONOMIC STUDIES
• ISSN/ISSBN: 0034-6527
• DOI: 10.1093/restud/rdab011
• 发表日期: 2022
• 页码: 240-278
• 关键词: rational choice; MODEL; preference; equilibrium; PSYCHOLOGY; DECISION; SALIENCE; product

摘要

We propose and axiomatize the categorical thinking model (CTM) in which the framing of the decision problem affects how agents categorize alternatives, that in turn affects their evaluation of it. Prominent models of salience, status quo bias, loss-aversion, inequality aversion, and present bias all fit under the umbrella of CTM. This suggests categorization is an underlying mechanism of key departures from the neoclassical model of choice. We specialize CTM to provide a behavioural foundation for the salient thinking model of Bordalo et al. (2013, Journal of Political Economy, 121, 803-843) that highlights its strong predictions and distinctions from other models.