We develop an axiomatic theory that integrates the discovered preference hypothesis into neoclassical microeconomic choice theory. A theory in which preferences must be discovered through experience can explain patterns observed in choice data, including preference reversals, evolution of or...

Implementation of Pigovian taxation relies on the presumption that individuals follow self-interested Nash equilibrium predictions of behavior when making decisions. Experimental evidence indicates that, while Nash predictions perform quite well in impersonal exchange, in other environments,...