Procedural Analysis of Choice Rules with Applications to Bounded Rationality

• 成果类型: Article
• 署名作者: Salant, Yuval
• 署名单位: Northwestern University
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.101.2.724
• 发表日期: 2011
• 页码: 724-748
• 关键词: BALLOT ORDER; complexity; position

摘要

I study how limited abilities to process information affect choice behavior. I model the decision-making process by an automaton, and measure the complexity of a specific choice rule by the minimal number of states an automaton implementing the rule uses to process information. I establish that any choice rule that is less complicated than utility maximization displays framing effects. I then prove that choice rules that result from an optimal trade-off between maximizing utility and minimizing complexity are history-dependent satisficing procedures that display primacy and recency effects. (JEL D01, D03, D11, D83)