Extending the bounds of rationality : evidence and theories of preferential choice

Rieskamp, J. and Busemeyer, J. R. and Mellers, B. A.. (2006) Extending the bounds of rationality : evidence and theories of preferential choice. Journal of economic literature, Vol. 44, H. 3. pp. 631-661.

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Official URL: http://edoc.unibas.ch/dok/A5261564

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Most economists define rationality in terms Of consistency principles. These principles place "bounds" on rationality-bounds that range from perfect consistency to weak stochastic transitivity. Several decades of research on preferential choice has demonstrated how and when people violate these bounds. Many of these violations are interconnected and reflect systematic behavioral principles. We discuss the robustness of the violations and review the theories that are able to predict them. We further discuss the adaptive functions of the violations. From this perspective, choices do more than reveal preferences; they also reflect subtle, yet often quite reasonable, dependencies on the environment.
Faculties and Departments:07 Faculty of Psychology > Departement Psychologie > Forschungsbereich Sozial-, Wirtschafts- und Entscheidungspsychologie > Economic Psychology (Rieskamp)
UniBasel Contributors:Rieskamp, Jörg
Item Type:Article, refereed
Article Subtype:Research Article
Publisher:Harvard University
Note:Publication type according to Uni Basel Research Database: Journal article
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Last Modified:22 Mar 2012 14:25
Deposited On:22 Mar 2012 13:48

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