Moody Choice

32 Pages Posted: 13 Jun 2010 Last revised: 22 Apr 2011

See all articles by Paola Manzini

Paola Manzini

University of St. Andrews - School of Economics and Finance; Institute for the Study of Labor (IZA)

Marco Mariotti

University of St. Andrews - School of Economics and Finance

Multiple version iconThere are 2 versions of this paper

Date Written: April 2011

Abstract

If choices depend on the decision maker's mood, is the attempt to derive any consistency in choice doomed? In this paper we argue that, even with full unpredictability of mood, the way choices from a menu relate to choices from another menu exhibits some structure. We present two alternative models of 'moody choice' and show that, in either of them, not all choice patterns are possible. Indeed, we characterise both models in terms of consistency requirements of the observed choice data.

Keywords: Bounded rationality, procedural rationality, utility maximization, choice behavior

JEL Classification: D01

Suggested Citation

Manzini, Paola and Mariotti, Marco, Moody Choice (April 2011). Available at SSRN: https://ssrn.com/abstract=1623319 or http://dx.doi.org/10.2139/ssrn.1623319

Paola Manzini (Contact Author)

University of St. Andrews - School of Economics and Finance ( email )

North St
Saint Andrews, Fife KY16 9AJ
United Kingdom

HOME PAGE: http://www.st-andrews.ac.uk/~pm210/

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

Marco Mariotti

University of St. Andrews - School of Economics and Finance ( email )

North St
Saint Andrews, Fife KY16 9AJ
United Kingdom

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