A search based analysis of decision making in simple allocation problems
Telli, Rabia (2016) A search based analysis of decision making in simple allocation problems. [Thesis]
In this thesis, we focus on the analysis of rationality for simple allocation problems by interpreting solution rules as data on the choices of a policy maker. For an inventory of bankruptcy rules, we show that only constrained equal awards rule satis es contraction independence. In addition, we weaken the rationality axiom and formulate the weak WARP (Weak Axiom of Revealed Preferences) property for simple allocation problems. We conclude that among a class of well-known solutions to simple allocation problems, the constrained equal awards rule uniquely satis es contraction independence and weak WARP. In order to see the implications of existence of behavioral constraints in making choice, we next construct a search based model in which the decision maker has to engage in a dynamic search to adjudicate the conicting claims and chose a division. Finally, we show that all allocation rules can be rationalized with this simple search model.
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