Author
Güney, Begüm, Richter, M., Tsur, M.
Publication Date
2018-07
Publication Place
-
Elsevier
Subject
Choice, Similarity, Aspirations, Consumer welfare
Type
Periodical
Language
English
Digital
Yes
Manuscript
No
Library
Özyeğin University
Library Asset ID
0022-0531
Record ID
8f6f3bd2-58c3-451d-9fac-495b3bd33c51
Library Location
Economics
Date
2018-07
Sample Text
Numerous studies and experiments suggest that aspirations for desired but perhaps unavailable alternatives influence decisions. A common finding is that an unavailable aspiration steers agents to choose similar available alternatives. We propose and axiomatically characterize a choice theory consistent with this aspirational effect. Similarity is modeled using a subjective metric derived from choice data. This model offers implications for consumer welfare and its distribution between rich and poor when firms compete for aspirational agents, and a novel rationale for sales.
DOI
10.1016/j.jet.2018.05.003
Cilt
176
