2018 Fiscal Year Research-status Report
A study on reference-dependent choice procedures with endogenously determined reference(s)
| Project/Area Number |
18K12739
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| Research Institution | Tohoku University |
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Principal Investigator |
QIN DAN 東北大学, 経済学研究科, 准教授 (10756092)
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| Project Period (FY) |
2018-04-01 – 2021-03-31
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| Keywords | choice overload / bounded rationality / revealed preference |
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| Outline of Annual Research Achievements |
In this academic year, the research is progressing smoothly. I have constructed three models of non-standard choice procedures. The first model is encoded by the triplet of preference, a pool of reference alternative, and an order of the references. Decision maker employs a reference alternative from the pool with respect to the order and generates a shortlist of alternatives. Preference maximization is then conducted on the shortlist. The second model involves a preference and a locality mapping describing the geometric distribution of alternatives. The choice set consists of locally optimal items. The third model is called the general model of choice overload, which is encoded in a pair of menu-dependent preference system and a consideration filter. The former is associated with imperfect perception in desirability, and the latter is associated with the imperfect perception of feasibility. Jointly, these two constraints limit the decision maker from making precise choices. I have successfully provided characterizations of the first two models. In addition, preliminary results on the welfare implication of the first two models have also been achieved. For the third model, preliminary characterizations have been achieved for two out of three variants of the model.
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| Current Status of Research Progress |
Current Status of Research Progress
2: Research has progressed on the whole more than it was originally planned.
Reason
The research is progressing rather smoothly. The reason is twofold. On one hand, I have successfully constructed and characterized most of the models intended to study in this project. The characterizations then provide windows for further advancement in the analysis of welfare implication as well as the potential application of the models. On the other hand, the third model evolved to be a joint international research project. I believe further collaboration is on the horizon as this project is successful and fruitful.
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| Strategy for Future Research Activity |
For the first model, in addition to refining the characterization, I will analyze the welfare implication of such a decision procedure. In particular, an interesting question is how the order of reference affect welfare evaluation. For the second procedure, I will generalize the model by relaxing the geometric properties of the space in which the alternatives are embedded. I will present the results of models 1 and 2 in conferences and workshops to get feedback from researchers in the field. For the third model, I will complete the characterization and examine the possibility of differentiating misperception of preference and misperception of the menu.
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| Causes of Carryover |
Multiple presentations in conferences and workshops are planned for the next fiscal year. In addition, part of the research involves international collaboration. Therefore, funds are reserved for travel expenses for that purpose. In addition, English polishing expenses and submission fee to certain journals are also necessary.
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