Reference-dependent choice behavior implies behavioral anomalies such as the so-called attraction effect, status quo bias, and endowment effect. This paper builds a new theory of revealed preference capturing preferences that depend on a reference point. The first main contribution of this work...

It has been widely documented that reference points influence the choice. If references affect choice by attracting attention towards an alternative, what can be said about the joint effect of the references? Assuming that references form preferences, or are rational filters, this paper extracts...

References can influence choice. One of the well-studied cases is when a decoy is added to the menu. However small in magnitude, decoy effect violates the weak axiom of revealed preferences (WARP). In order to explain the small deviation from the classical revealed preference theory, I decompose...

The relation between Sen's decomposition of the weak axiom of revealed preferences (WARP), and WARP directional decomposition introduced in Nosratabadi (2017) is investigated. It is argued that the latter generalizes the former. A pairwise transitive WARP decomposition consistent with Sen's...

The connection between Sen's decomposition of the weak axiom of revealed preferences (WARP), and WARP directional decomposition introduced in Nosratabadi (2017) is investigated. A strengthening of Sen's decomposition is provided. Also a pairwise transitive WARP decomposition consistent with...

We introduce the notion of preference systems ⟨≿,{≿r} r∈X⟩ where ≿ is the classical (unreferenced) preference over X, and ≿r is a referenced preference that, adopting r ∈ X as a reference point, reevaluates the alternatives deemed better than r under ≿. Contrary to the recent...