Relative identification of sequentially rationalizable choice procedures

Abstract

Sequentially Rationalizable Choice functions are a famous family of boundedly rational choice procedures. Given a set A of alternatives, the Decision Maker applies sequentially to each choice problem a pair of asymmetric binary relations to eliminate dominated alternatives. By playing with the conditions of the used binary relations, we consider four types of Sequentially Rationalizable Choice theories. Although these choice theories seem to behave similarly, there exist simple behavioral differences among these theories. The method of relative identification helps us to find specifically the simple behavioral differences that disentangle each of the choice theories considered.