Rational Choice: the Case of Path Dependent Procedures

Describing a procedure in which choice proceeds in a sequence, we propose two alternatives ways of resolving the decision problem whenever the outcome is sequence-sensitive. One way yields a rationalizable choice set, and the other way produces a weakly rationalizable choice set that is equivalent to von Neumann-Morgenstern's stable set. It is shown that for quasi-transitive rationalization, the maximal set must coincide with its stable set.