Revealing preference discovery: a chronological choice framework

We propose a framework for the analysis of choice behaviour when the latter is made explicitly in chronological order. We relate this framework to the traditional choice theoretic setting from which the chronological aspect is absent, and compare it to other frameworks that extend this traditional s...

Full description

Saved in:
Bibliographic Details
Published in:Theory and decision 2024-07
Main Authors: Ferreira, João V., Gravel, Nicolas
Format: Article
Language:English
Subjects:
Economics and Finance
Humanities and Social Sciences
Citations: Items that this one cites
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:We propose a framework for the analysis of choice behaviour when the latter is made explicitly in chronological order. We relate this framework to the traditional choice theoretic setting from which the chronological aspect is absent, and compare it to other frameworks that extend this traditional setting. Then, we use this framework to analyse various models of preference discovery. We characterise, via simple revealed preference tests, several models that differ in terms of (1) the priors that the decision-maker holds about alternatives and (2) whether the decision-maker chooses period by period or uses her knowledge about future menus to inform her present choices. These results provide novel testable implications for the preference discovery process of myopic and forward-looking agents.
ISSN:0040-5833
1573-7187
DOI:10.1007/s11238-024-09993-9