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Dual decision processes: Retrieving preferences when some choices are intuitive

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Abstract

Evidence from cognitive sciences shows that some choices are conscious and re ect individual prefer- ences while others tend to be intuitive, driven by analogies with past experiences. Under these circum- stances, usual economic modeling might not be valid because not all choices are the consequence of individual tastes. We here propose a behavioral model that can be used in standard economic analysis that formalizes how conscious and intuitive choices arise by presenting a decision maker composed by two systems. One system compares past decision problems with the one the decision maker faces, and it replicates past behavior when the problems are similar enough (Intuitive choices). Otherwise, a second system is activated and preferences are maximized (Conscious choices). We then present a novel method capable of nding conscious choices just from observed behavior and nally, we provide a choice theoretical foundation of the model and discuss its importance as a general framework to study behavioral inertia.

Suggested Citation

  • Francesco Cerigioni, 2016. "Dual decision processes: Retrieving preferences when some choices are intuitive," Economics Working Papers 1550, Department of Economics and Business, Universitat Pompeu Fabra.
    • Handle: RePEc:upf:upfgen:1550
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    References listed on IDEAS

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    Cited by:

    1. Todd Guilfoos & Andreas Duus Pape, 2020. "Estimating Case-Based Learning," Games, MDPI, vol. 11(3), pages 1-25, September.
    2. João V. Ferreira & Nicolas Gravel, 2017. "Choice with Time," AMSE Working Papers 1729, Aix-Marseille School of Economics, France.
    3. D. Pennesi, 2016. "Deciding fast and slow," Working Papers wp1082, Dipartimento Scienze Economiche, Universita' di Bologna.

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    More about this item

    Keywords

    Dual Processes; Fast and Slow Thinking; Similarity; Revealed Preferences; Memory; Intuition;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D60 - Microeconomics - - Welfare Economics - - - General

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