Rationality in a general model of choice

Individual Rationality in Collective Choice

This paper studies the rationality of an individual player in sequential games of perfect information played with other players who are not necessarily rational. The paper proposes a set of properties on the choice behavior and shows that they are equivalent to the rationality of an individual player at the initial node independently of the behavioral norm of the other players. Furthermore, I s...

A Memory Based Model of Bounded Rationality a Memory Based Model of Bounded Rationality a Memory Based Model of Bounded Rationality a Memory Based Model of Bounded Rationality

How do memory limitations affect economic behavior? I develop a model of memory grounded in psychology and biology research to investigate this question. Using this model, I study the case where people apply Bayes rule to the history they recall as if it were the true history. The resulting beliefs exhibit over-reaction on average. They also exhibit under-reaction with the model providing enoug...

Choice, rationality, and substance dependence.

Choice, Rationality and Welfare Measurement

We present a method for evaluating the welfare of a decision maker, based on observed choice data. Unlike the standard economic theory of revealed preference, our method is can be used whether or not the observed choices are rational. Paralleling the standard theory we present a model for choice such that the observations arise "as if" they were the result of a speci…c decision making process. ...

Collective Rationality and Social Choice

Arrow’s impossibility theorem states that if a collective choice rule satisfies unrestricted domain, weak Pareto, independence of irrelevant alternatives, and collective rationality, then there exists a dictator. Among others, Arrow’s postulate of collective rationality is controversial. We propose a new axiom for a collective choice rule, decisiveness coherence, which is weaker than collective...