Rational choice with status quo bias

Abstract

Motivated by the empirical findings concerning the importance of one’s current situation on her choice behavior, the main objective of this paper is to propose a rational choice theory that allows for the presence of a status quo bias, and that incorporates the standard choice theory as a special case. We follow a revealed preference approach, and obtain… (More)
DOI: 10.1016/j.jet.2004.03.007

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