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Reason-Based Rationalization

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  • Dietrich, Franz
  • List, Christian

Abstract

We introduce a “reason-based” way of rationalizing an agent’s choice behaviour, which explains choices by specifying which properties of the options or choice context the agent cares about (the “motivationally salient properties”) and how he or she cares about these properties (the “fundamental preference relation”). Reason-based rationalizations can explain non-classical choice behaviour, including boundedly rational and sophisticated rational behaviour, and predict choices in unobserved contexts, an issue neglected in standard choice theory. We characterize the behavioural implications of different reason-based models and distinguish two kinds of context-dependent motivation: “context-variant” motivation, where the agent cares about different properties in different contexts, and “context-regarding” motivation, where the agent cares not only about properties of the options, but also about properties relating to the context.

Suggested Citation

  • Dietrich, Franz & List, Christian, 2013. "Reason-Based Rationalization," MPRA Paper 51776, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:51776
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    References listed on IDEAS

    as
    1. Gil Kalai & Ariel Rubinstein & Ran Spiegler, 2002. "Rationalizing Choice Functions By Multiple Rationales," Econometrica, Econometric Society, vol. 70(6), pages 2481-2488, November.
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    4. Dietrich, Franz & List, Christian, 2016. "Mentalism Versus Behaviourism In Economics: A Philosophy-Of-Science Perspective," Economics and Philosophy, Cambridge University Press, vol. 32(2), pages 249-281, July.
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    More about this item

    Keywords

    reasons; rationalization; context-dependence; motivational salience; properties;
    All these keywords.

    JEL classification:

    • B40 - Schools of Economic Thought and Methodology - - Economic Methodology - - - General
    • B49 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Other
    • B5 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches
    • C0 - Mathematical and Quantitative Methods - - General
    • C00 - Mathematical and Quantitative Methods - - General - - - General
    • D0 - Microeconomics - - General
    • D00 - Microeconomics - - General - - - General
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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