Revealing preference discovery: a chronological choice framework
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 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.
Chronological choice, Preference discovery, Revealed preferences, Myopic agents, Forward-looking agents
Ferreira, João V.
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Gravel, Nicolas
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Ferreira, João V.
0aad606a-eab0-473c-a230-9b3dfa2d7d93
Gravel, Nicolas
f92a7016-6c5c-4ced-af07-904fc7302a74
Ferreira, João V. and Gravel, Nicolas
(2024)
Revealing preference discovery: a chronological choice framework.
Theory and Decision.
(In Press)
Abstract
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.
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Accepted/In Press date: 9 May 2024
Keywords:
Chronological choice, Preference discovery, Revealed preferences, Myopic agents, Forward-looking agents
Identifiers
Local EPrints ID: 491545
URI: http://eprints.soton.ac.uk/id/eprint/491545
ISSN: 0040-5833
PURE UUID: 8738e662-9806-4533-9fdd-58d499ec2060
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Date deposited: 25 Jun 2024 17:12
Last modified: 26 Jun 2024 01:59
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Author:
Nicolas Gravel
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