Pairwise Normalization: A Neuroeconomic Theory of Multi-Attribute Choice
35 Pages Posted: 9 May 2017 Last revised: 17 May 2018
Date Written: May 14, 2018
Abstract
We present a theory of multi-attribute choice based on a notion of pairwise, attribute-level comparisons through (divisive) normalization — a form of relative value encoding observed in neural processing across sensory modalities and in species ranging from honeybees to humans. The model uniquely captures a broad range of context-dependent behaviors that are commonly reported in the experimental literature, while also providing a proposed neurobiological basis for some classic microeconomic preference representations.
Suggested Citation: Suggested Citation
Peter Landry
University of Toronto - Rotman School of Management ( email )
105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4
Canada
