Rubinstein2005-page53

Rubinstein2005-page53 - 12:18 master Sheet number 51 Page...

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October 21, 2005 12:18 master Sheet number 51 Page number 35 Choice 35 Imagine, for example, a European student who would choose Princeton if allowed to choose from { Princeton , LSE } and would choose LSE if he had to choose from { Princeton , Chicago , LSE } . His explana- tion is that he prefers an American university so long as he does not have to choose between American schools—a choice he deems harder. Having to choose from { Princeton , Chicago , LSE } ,he Fnds it difFcult deciding between Princeton and Chicago and there- fore chooses not to cross the Atlantic. His choice does not satisfy , not because of a careless speciFcation of the alternatives (as in the restaurant’s menu example discussed previously), but because his reasoning involves an attempt to avoid the difFculty of making a decision. Another example follows Huber, Payne, and Puto (1982): Let a = ( a 1 , a 2 ) be “a holiday package of a 1 days in Paris and a 2 days in London.” Choose one of the four vectors
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This note was uploaded on 12/29/2011 for the course ECO 443 taught by Professor Aswa during the Fall '10 term at SUNY Stony Brook.

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