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From Normative Rationality to Cognitive Consistency

Author

Listed:
  • Louis Lévy-Garboua

    (TEAM - Théories et Applications en Microéconomie et Macroéconomie - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Serge Blondel

    (Institut National d'Horticulture)

Abstract

Cognitive dissonance or cognitive consistency theory, as we understand it, does not presume irrational behavior although it is inconsistent with normative rationality. Previous discussions have overlooked that cognitive dissonance implied dynamic uncertainty. Once this dimension of choice is restored, it becomes obvious why normative rationality does not properly describe fully rational behavior. Aiming at cognitive consistency is then the optimal way to behave.

Suggested Citation

  • Louis Lévy-Garboua & Serge Blondel, 2000. "From Normative Rationality to Cognitive Consistency," Post-Print halshs-03774097, HAL.
    • Handle: RePEc:hal:journl:halshs-03774097
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03774097
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    References listed on IDEAS

    as
    1. Amos Tversky & Daniel Kahneman, 1991. "Loss Aversion in Riskless Choice: A Reference-Dependent Model," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(4), pages 1039-1061.
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    3. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    4. Smith, Vernon L, 1991. "Rational Choice: The Contrast between Economics and Psychology," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 877-897, August.
    5. Machina, Mark J, 1987. "Choice under Uncertainty: Problems Solved and Unsolved," Journal of Economic Perspectives, American Economic Association, vol. 1(1), pages 121-154, Summer.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Cognitive dissonance; dynamic uncertainty; rationality; dissonance cognitive; incertitude dynamique; rationalité;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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