CONSUMER CHOICE RULE WHILE EXAMING SIMILAR CONSUMPTION BUNDLES: RATIONAL CHOICE TO BEHAVIOURAL BIAS

2021 ◽  
Author(s):  
Vibhu Vikramaditya
Keyword(s):  
Rational Choice ◽  
Consumer Choice ◽  
Choice Rule

Consumer Utility Function: Initial Findings Through Lagrange Optimization Method

2012 ◽  
Vol 1 (1) ◽  
Author(s):  
Ferdinand C. Paurom
Keyword(s):  
Utility Function ◽  
Rational Choice ◽  
Consumer Choice ◽  
Indifference Curve ◽  
Optimization Method ◽  
Negative Slope ◽  
United States Department ◽  
Department Of Agriculture ◽  
The Us ◽  
Pork Consumption

The main problem in utility theory or its variant theory of consumer choice is that consumer is assumed capable of rational choice; yet, such choice is incapable of translating itself into rational numbers. On this account the assumption of rational choice remains dubious. This paper utilized Lagrange optimization method to approximate consumer utility function measured in cardinal units. The utility function was derived from the US deflated annual per capita consumption of pork and beef (United States department of Agriculture, USDA, 1998). This paper demonstrates that when quantities of pork are consumed, given the price, in effect gives diminishing marginal levels of pork consumption in opposite monotonic direction with beef consumption. Changes in the level of consumption approximate cardinally the consumer utility function consistent with the properties of indifference curve and with the axioms of consumer rational choice. This paper has two objectives: 1) to provide further insights on the measurability of consumer utility, and 2) to provide basis for forecasting the demand for pork and beef. This paper concluded that Pork-beef substitution of US consumers is an exponential function which exhibits pattern of the textbook-defined indifference curve and has the features of negative slope, convexity and asymptote. The function is also consistent with the axioms of consumer rational choice.   Keywords - consumer utility function, lagrange optimization method

RATIONAL CHOICE, RULE-FOLLOWING AND INSTITUTIONS

2010 ◽  
pp. 171-202 ◽  
Author(s):  
Viktor Vanberg
Keyword(s):  
Rational Choice ◽  
Choice Rule ◽  
Rule Following

Optimal product positioning with consideration of negative utility effect on consumer choice rule

2012 ◽  
Vol 54 (1) ◽  
pp. 402-413 ◽  
Author(s):  
X.G. Luo ◽  
C.K. Kwong ◽  
J.F. Tang ◽  
Y.L. Tu
Keyword(s):  
Consumer Choice ◽  
Choice Rule ◽  
Product Positioning

Joint optimization of product family design and supplier selection under multinomial logit consumer choice rule

2012 ◽  
Vol 20 (4) ◽  
pp. 335-347 ◽  
Author(s):  
Yan Cao ◽  
Xing Gang Luo ◽  
C K Kwong ◽  
Jiafu Fu Tang ◽  
Wei Zhou
Keyword(s):  
Consumer Choice ◽  
Supplier Selection ◽  
Product Family ◽  
Multinomial Logit ◽  
Choice Rule ◽  
Joint Optimization ◽  
Product Family Design

scholarly journals In Pursuit of Sustainable Mobile Policy: A Study of Consumer Tariff Preferences under Uncertainty

2021 ◽  
Vol 13 (2) ◽  
pp. 540
Author(s):  
Seunghee Han ◽  
Jooyong Jun ◽  
Eunjung Yeo
Keyword(s):  
Rational Choice ◽  
Consumer Choice ◽  
Rational Choice Theory ◽  
Choice Theory ◽  
Consumer Preference ◽  
Flat Rate ◽  
Data Usage ◽  
Plan Choice ◽  
Tariff Structures ◽  
High Uncertainty

Literature suggests that consumers expect disutility not only from payment uncertainties but also from reference uncertainties embedded in mobile plans. This paper develops a model of mobile plan choice incorporating both reference and payment uncertainties and uses this model to derive testable implications. The paper argues that consumer choice reflects those uncertainties more than could be justified by rational choice theory. Such patterns, the paper hypothesizes, would be more salient in the choice of data plan than voice plan because consumers tend to perceive data usage to be less controllable than voice usage, thus preferring the plan that reduces uncertainty. The paper tests the predictions with data from a laboratory study analyzing a series of choices between plans with different tariff structures—flat-rate, two-part, and three-part tariffs. As predicted, the results suggest that payment and reference uncertainties create significant disutility for consumers, especially when they perceive high uncertainty about their usage. Such understanding of consumer preference and underlying psychological biases is important in the sense that it provides an essential basis for the development of sustainable mobile policy.

Rational Choice and Democratic Deliberation

2006 ◽  
Author(s):  
Guido Pincione ◽  
Fernando R. Teson
Keyword(s):  
Rational Choice ◽  
Democratic Deliberation
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