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Twisting the truth: Foundations of wishful thinking

Kovach, Matthew - In: Theoretical Economics 15 (2020) 3, pp. 989-1022

Considerable evidence shows that people have optimistic beliefs about future outcomes. I present an axiomatic model of wishful thinking (WT), in which an endowed alternative, or status quo, influences the agent's beliefs over states and thus induces such optimism. I introduce a behavioral axiom...

Persistent link: https://www.econbiz.de/10013188993

Indifference, indecisiveness, experimentation and stochastic choice

Ok, Efe A.; Tserenjigmid, Gerelt - In: Theoretical Economics 17 (2022) 2, pp. 651-686

Among the reasons behind the choice behavior of an individual taking a stochastic form are her potential indifference or indecisiveness between certain alternatives, and/or her willingness to experiment in the sense of occasionally deviating from choosing a best alternative in order to give a...

Persistent link: https://www.econbiz.de/10014536935

Choice overload and asymmetric regret

Buturak, Gökhan; Evren, Özgür - In: Theoretical Economics 12 (2017) 3, pp. 1029-1056

decision maker who does not consider the possibility of experiencing regret for choosing the default option. By contrast, the … choice problems. Our main finding is a behavioral characterization of an asymmetric regret representation that depicts a … value of ordinary alternatives is subject to regret. The calculus of regret for ordinary alternatives is identical to that …

Persistent link: https://www.econbiz.de/10012010006

Choice by iterative search

Nakajima, Daisuke; Masatlioglu, Yusufcan - In: Theoretical Economics 8 (2013) 3, pp. 701-728

When making choices, decision makers often either lack information about alternatives or lack the cognitive capacity to …

Persistent link: https://www.econbiz.de/10011599496

Monotone threshold representations

Frick, Mira - In: Theoretical Economics 11 (2016) 3, pp. 757-772

Motivated by the literature on ``choice overload'', we study a boundedly rational agent whose choice behavior admits a \textit{monotone threshold representation}: There is an underlying rational benchmark, corresponding to maximization of a utility function $v$, from which the agent's choices...

Persistent link: https://www.econbiz.de/10011599584

Choice by iterative search

Nakajima, Daisuke; Masatlioglu, Yusufcan - In: Theoretical Economics 8 (2013) 3

When making choices, decision makers often either lack information about alternatives or lack the cognitive capacity to …

Persistent link: https://www.econbiz.de/10010691959

Iterated weak dominance and interval-dominance supermodular games

Sobel, Joel - In: Theoretical Economics 14 (2019) 1, pp. 71-102

This paper extends Milgrom and Robert's treatment of supermodular games in two ways. It points out that their main characterization result holds under a weaker assumption. It refines the arguments to provide bounds on the set of strategies that survive iterated deletion of weakly dominated...

Persistent link: https://www.econbiz.de/10012215311

Valuation equilibrium

Jehiel, Philippe; Samet, Dov - In: Theoretical Economics 2 (2007) 2, pp. 163-185

decision problems and multi-player extensive form games. It is contrasted with existing solution concepts. The valuation …

Persistent link: https://www.econbiz.de/10011599386

Savage games

Grant, Simon; Meneghel, Idione; Tourky, Rabee - In: Theoretical Economics 11 (2016) 2, pp. 641-682

games for which the preferences of the players admit representations from a wide class of decision-theoretic models. …

Persistent link: https://www.econbiz.de/10011599580

Valuation equilibrium

Jehiel, Philippe; Samet, Dov - In: Theoretical Economics 2 (2007) 2

decision problems and multi-player extensive form games. It is contrasted with existing solution concepts. The valuation …

Persistent link: https://www.econbiz.de/10005730966