Papers by Hassan Nosratabadi
RePEc: Research Papers in Economics, 2017
References can influence choice. One of the well-studied cases is when a decoy is added to the me... more References can influence choice. One of the well-studied cases is when a decoy is added to the menu. However small in magnitude, decoy effect violates the weak axiom of revealed preferences (WARP). In order to explain the small deviation from the classical revealed preference theory, I decompose WARP into independent axioms in order to only remove the ones which are inconsistent with the this effect. This minimal deviation produces the referential revealed preference theory that keeps the strong predictive power offered in the classical theory while explaining the referential effect.
Journal of Mathematical Economics
SSRN Electronic Journal, 2017
We study a shortlisting model of choice where the decision-maker applies a sequence of rationales... more We study a shortlisting model of choice where the decision-maker applies a sequence of rationales in order to increasingly filter her choice. In contrast to the existing literature where the rationales are exogenously given, the model allows them to be endogenously triggered by the inferior alternatives in the menu. In addition, this filtering process may be done by any number of the endogenous rationales; thus, the model generalizes the existing literature in which the shortlisting boils down to the “two-stage” processes. Endogenous Rational Shortlist Method captures the choice anomalies in the multi-attribute space where the shortlisting seems to be a natural heuristic, and where the<br>existing literature comes short. Moreover, while the model explains the direct relevance of the inferior alternatives, it further predicts the indirect relevance of the non-inferiors.<br>
SSRN Electronic Journal, 2017
The connection between Sen's decomposition of the weak axiom of revealed preferences (WARP), ... more The connection between Sen's decomposition of the weak axiom of revealed preferences (WARP), and WARP directional decomposition introduced in Nosratabadi (2017) is investigated. A strengthening of Sen's decomposition is provided. Also a pairwise transitive WARP decomposition consistent with Sen's property α is given.
arXiv (Cornell University), Aug 16, 2022
An observer wants to understand a decision maker's welfare from her choices. She believes that de... more An observer wants to understand a decision maker's welfare from her choices. She believes that decisions are made under limited attention-i.e., not all alternatives are considered. Given the experimental evidence, we argue that existing models of limited attention are not helpful in achieving this observer's goal. We propose a "minimal" adjustment to the baseline model of choice under limited attention by assuming that the decision process involves at least one comparison. Using experimental data, we illustrate that this adjustment significantly enriches the welfare relevance of the model with negligible costs in its explanatory power. * We would like to thank Yuta Inoue and Koji Shirai for providing the data used in this paper. We would also like to thank Joshua Lanier and Yusufcan Masatlioglu for providing valuable comments.
SSRN Electronic Journal, 2016
We run experiments with a stag hunt and bargaining coordination game. Using a between-subjects de... more We run experiments with a stag hunt and bargaining coordination game. Using a between-subjects design, we vary the identity of the opponent between someone of the same culture or a different culture. The idea is to see whether cultural norms or identity play a part in coordination decisions. We compare the responses of British and Asian students at the University of Exeter and show the cultural identity of the opponent by physical appearance. The players appear to use cultural stereotypes to predict behaviour, especially in the bargaining game which may require more strategic thought than the stag hunt game. In particular, the British act in way that indicates they believe the Asians will behave more cautiously than other British. According to our results, the stereotype of Asians being cautious is misleading.
It has been widely documented that reference points influence the choice. If references affect ch... more It has been widely documented that reference points influence the choice. If references affect choice by attracting attention towards an alternative, what can be said about the joint effect of the references? Assuming that references form preferences, or are rational filters, this paper extracts a reference-dependent choice model with joint referential effects from WARP. Assume that a DM has an “unfiltered” pairwise preference which is inferred from her choice over doubletons. The DM’s uses her rational filters consecutively on the pairwise preference in order to finalize her choice.
References can influence choice. One of the well-studied cases is when a decoy is added to the me... more References can influence choice. One of the well-studied cases is when a decoy is added to the menu. However small in magnitude, decoy effect violates the weak axiom of revealed preferences (WARP). In order to explain the small deviation from the classical revealed preference theory, I decompose WARP into independent axioms in order to only remove the ones which are inconsistent with the this effect. This minimal deviation produces the referential revealed preference theory that keeps the strong predictive power offered in the classical theory while explaining the referential effect. JEL Classification: D11, D81.
OF THE DISSERTATION Three Essays in the Theory of Preferences by SEYED HASSAN NOSRATABADI Dissert... more OF THE DISSERTATION Three Essays in the Theory of Preferences by SEYED HASSAN NOSRATABADI Dissertation Director: Oriol Carbonell-Nicolau This dissertation consists of three chapters. The first chapter addresses the classical questions of utility representation and maximization. It relaxes the notion of weak upper continuity (Campbell and Walker (1990)) to obtain a property called partial weak upper continuity and shows that both maximization of preferences and representation by a utility function can be achieved under this new property. The rest of this dissertation focuses on extending revealed preference theory to accommodate behavioral anomalies observed in the experimental data. In particular, I offer a framework to expand the theory of revealed preferences to the case where a DM’s choice is not completely identified with a single preferences. In Chapter 2, I use a divide and conquer procedure in order to expand the revealed preference theory to accommodate behavioral anomalies ...
Mathematical Social Sciences
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Papers by Hassan Nosratabadi