Random choice with status quo bias

Le mardi 18 mars, à 11h, en salle Maurice Desplas, le LEMMA accueillera Eric DANAN.

Eric DANAN est directeur de recherche au CNRS en économie et directeur du centre de recherche THEMA à l'Université CY Cergy Paris. Ses recherches portent sur la théorie de la décision, le choix social et l'économie expérimentale. 

Eric DANAN présentera : Random choice with status quo bias en collaboration avec Tigran MELKONYAN et Zvi SAFRA.

Résumé :

This is an ongoing work aiming to introduce status quo bias (and subsequently other types of framings or nudges) into random choice models. Existing models of status quo bias (e.g. Masatlioglu and Ok, 2005; 2013) are cast in a deterministic choice framework and, consequently, the status quo often has an extreme effect on choice. Adopting a random choice setting therefore seems more plausible. We thus introduce status quo options in the random expected utility model of GUL and PESENDORFER (2006), define and axiomatize a representation where the status quo affects choice probabilities through utility penalties.