Nontransitive choices have long been an area of curiosity within economics. However, determining whether nontransitive choices represent an individual’s preference is a difficult task since choice data is inherently stochastic. This paper shows that behavior from nontransitive preferences...

The standard economic choice model assumes that the decision maker chooses from <i>sets</i> of alternatives. In contrast, we analyze a choice model in which the decision maker encounters the alternatives in the form of a <i>list</i>. We present two axioms similar in nature to the classical axioms of choice...

Current time allocation and household production models face three major weaknesses: First, they only describe the average time allocation. Thus, information about the order of activities is lost. Therefore, it is impossible to describe the influence of activities on later ones. Such...

We investigate whether violations of canonical axioms of choice under risk are mistakes or a manifestation of true preferences. First, we elicit axiom and gamble preferences and then allow subjects to revise their potentially conflicting preferences. Among the behavioral patterns that allow for...

We study two dimensions of complexity that may interfere with individual choice. The first one is object complexity, which corresponds to the difficulty in evaluating any given alternative in a choice set. The second dimension is composition complexity, which increases when suboptimal...

We investigate whether violations of canonical axioms of choice under risk are mistakes or a manifestation of true preferences. First, we elicit axiom and gamble preferences and then allow subjects to revise their potentially conflicting preferences. Among the behavioral patterns that allow for...

We investigate consumers’ preference for scarcity in a real market with large stakes. We find evidence that the elasticity of demand for scarcity is constant across prices ranging from $50 to nearly $4 million, that preference for scarcity follows a power law, and that it explains 95% of the...

A decision maker (DM) makes choices from different sets of alternatives. The DM is initially fully ignorant of the payoff associated to each alternative, and learns these payoffs only after a large number of choices have been made. We show that, in the presence of an outside option once payoffs...