Eliciting welfare preferences from behavioural data sets

Ariel Rubinstein, Yuval Salant

    Research output: Contribution to journalArticlepeer-review

    Abstract

    An individual displays various preference orderings in different payoff-irrelevant circumstances. It is assumed that the variation in the observed preference orderings is the outcome of some cognitive process that distorts the underlying preferences of the individual. We introduce a framework for eliciting the individual's underlying preferences in such cases and then demonstrate it for two cognitive processes-satisficing and small assessment errors.

    Original languageEnglish (US)
    Pages (from-to)375-387
    Number of pages13
    JournalReview of Economic Studies
    Volume79
    Issue number1
    DOIs
    StatePublished - Jan 1 2012

    Keywords

    • Behavioural data set
    • Bounded rationality
    • Preferences
    • Welfare analysis

    ASJC Scopus subject areas

    • Economics and Econometrics

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