Reference-dependent choice bracketing

• 成果类型: Article
• 署名作者: Vorjohann, Pauline
• 署名单位: University of Exeter
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2026.106207
• 发表日期: 2026
• 关键词: variety-seeking; prospect-theory; loss aversion; preferences; utility; work; PARTICIPATION; DECISION; wages; MODEL

摘要

I derive a model of choice bracketing from two behavioral axioms in an expected utility framework. The first behavioral axiom establishes a link between narrow bracketing and correlation neglect. The second behavioral axiom identifies the reference point as the connector between broad and narrow preferences. The narrow bracketer is characterized by an inability to process changes from the reference point in different dimensions simultaneously. As a result, her tradeoffs between dimensions are distorted. She evaluates dimensions in isolation, implying a disregard for how they affect one another. When evaluating a dimension, she remains anchored to the reference point in the respective other dimension. This implies that she mistakenly perceives preference interactions in relation to the reference point. I present applications to portfolio choice, consumption bundle choice, and an exchange economy.