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
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.
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