Journal
THEORY AND DECISION
Volume 80, Issue 2, Pages 295-312Publisher
SPRINGER
DOI: 10.1007/s11238-015-9499-7
Keywords
Partial dominance; Incomplete preferences; Choice deferral; Status quo bias; Attraction effect
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Funding
- Scottish Institute for Research in Economics
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This paper proposes and axiomatically characterizes a model of choice that builds on the criterion of partial dominance and allows for two types of avoidant behavior: choice deferral and status quo bias. These phenomena are explained in a unified way that allows for a clear theoretical distinction between them to be made. The model also explains the strengthening of the attraction effect that has been observed when deferral is permissible. Unlike other models of status quo biased behavior, the one analyzed in this paper builds on a unique, reference-independent preference relation that is acyclic and generally incomplete. When this relation is complete, the model reduces to rational choice.
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