Theoretical Economics, Volume 8, Number 3 ( 2013)

Theoretical Economics 8 (2013), 775–800


Rationalization

Vadim Cherepanov, Timothy Feddersen, Alvaro Sandroni

Abstract


In 1908 the Welsh neurologist and psychoanlayst Ernest Jones described human beings as rationalizers whose behavior is governed by "the necessity of providing an explanation." We construct a formal and testable model of rationalization in which a decision maker selects her preferred alternative from among those that she can rationalize.

Keywords: Rationalization, revealed preferences

JEL classification: D01

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