On the Structure of Choice Under Different External References

Posted: 4 Nov 1999

See all articles by Wulf Gaertner

Wulf Gaertner

Universität Osnabrück

Yongsheng Xu

Georgia State University - Andrew Young School of Policy Studies

Abstract

In this paper we fully characterize an individual's choice behaviour according to three different so-called external references. The first system which we describe axiomatically is standard utility maximization or preference optimization. The second approach characterizes the choice of the second largest element as an optimal choice, the third system is the choice of a medium element, also as a first best choice. For all three approaches, we have established a common axiomatic structure which allows us to point out rather precisely congruences and divergences among the different systems considered.

JEL Classification: D10, D80, D71

Suggested Citation

Gaertner, Wulf and Xu, Yongsheng, On the Structure of Choice Under Different External References. Available at SSRN: https://ssrn.com/abstract=189442

Wulf Gaertner (Contact Author)

Universität Osnabrück ( email )

Department of Economics
D-49069 Osnabrueck
Germany

Yongsheng Xu

Georgia State University - Andrew Young School of Policy Studies ( email )

Department of Economics
35 Broad Street, 6th Floor Department of Economics
Atlanta, GA 30303-3083
United States

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