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Choosing on Influence

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Abstract

Interaction, the act of mutual influence, is an essential part of daily life and economic decisions. This paper presents an individual decision procedure for interacting individuals. According to our model, individuals seek influence from each other for those issues that they cannot solve on their own. Following a choice-theoretic approach, we provide simple properties that aid to detect interacting individuals. Revealed preference analysis not only grants underlying preferences but also the influence acquired.
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Original languageEnglish
Pages (from-to)477-492
Number of pages16
JournalTheoretical Economics
Volume12
Issue number2
Early online date26 May 2017
DOIs
Publication statusPublished - 26 May 2017

    Research areas

  • Interaction, Social influence, Boundedly rational decision making, Two-stage maximization, Incomplete preferences

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