Journal Article

Eliciting Welfare Preferences from Behavioural Data Sets

Ariel Rubinstein and Yuval Salant

in The Review of Economic Studies

Published on behalf of Review of Economic Studies Ltd

Volume 79, issue 1, pages 375-387
Published in print January 2012 | ISSN: 0034-6527
Published online August 2011 | e-ISSN: 1467-937X | DOI: https://dx.doi.org/10.1093/restud/rdr024
Eliciting Welfare Preferences from Behavioural Data Sets

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An individual displays various preference orderings in different payoff-irrelevant circumstances. It is assumed that the variation in the observed preference orderings is the outcome of some cognitive process that distorts the underlying preferences of the individual. We introduce a framework for eliciting the individual's underlying preferences in such cases and then demonstrate it for two cognitive processes—satisficing and small assessment errors.

Keywords: Welfare analysis; Preferences; Behavioural data set; Bounded rationality; D01; D03; D60

Journal Article.  7236 words. 

Subjects: Welfare Economics ; Microeconomics

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