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As If vs. Substantive Rationality: Identification and Implications — NSF Award to Brown University (RI, $583,769)

Economic decision makers face an important constraint: while they need to know consumer preferences to identify welfare improvements, they can only observe choices made. Hence, welfare economics and its resulting implications rest heavily on the idea that choices are driven by one’s preferences. Under the classic model

Award titleAs If vs. Substantive Rationality: Identification and Implications
Award ID2416935
AwardeeBrown University
CityPROVIDENCE
StateRI
Amount obligated$583,769
Principal investigatorKareen Rozen
ProgramEconomics
Start date09/01/2024
AbstractEconomic decision makers face an important constraint: while they need to know consumer preferences to identify welfare improvements, they can only observe choices made. Hence, welfare economics and its resulting implications rest heavily on the idea that choices are driven by one’s preferences. Under the classic model of rationality, a consumer has a stable preference over alternatives and systematically uses it to choose the best affordable option. Because neither decision process nor preferen
SourceNSF Awards

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