choice functions satisfying the condition for any r, and provide an algorithm to compute the maximal degree of r-rationality …We propose a notion of r-rationality, a relative version of satisficing behavior based on the idea that, for any set of … available alternatives, individuals choose one of their r-best according to a single preference order. We fully characterize the …

will be higher than either an efficient auction or a first-price auction. However, if the buyer can sell preference in a … stronger supplier with the more favorable cost distribution has a greater willingness to pay for preference, and will outbid …We consider a model of preference in an asymmetric procurement auction with two suppliers. The buyer can award the …

a new way to identify the preference relation which is closest, in terms of welfare loss, to the revealed choice. …Evidence showing that individual behavior often deviates from the classical principle of preference maximization has … raised at least two important questions: (i) How serious are the deviations? and (ii) What is the best way to analyse choice …

their future performance. We argue that training with an emphasis on the standard assumptions used in economics (rationality …

preference data. In our first result, we show that there is a unique measure of rationality that satisfies all of the proposed …There is ample evidence to show that choice behavior often deviates from the classical principle of maximization. This … these two questions by proposing a set of foundational conditions on which to build a proper measure of the rationality of …