@article{b443f2518a024636b3f6d612ae470a38,
title = "Rational status quo",
abstract = "Decision makers often stick to a status quo without explicitly reconsidering it. Yet, their observed choices might be compatible with a fully rational model. We ask when such a rationalization is possible. We assume as observable only the choice of sticking to the status quo vs. changing it, as a function of a database of cases. We state conditions on the set of databases that would make the decision maker change the status quo, which are equivalent to the following representation: the decision maker entertains a set of theories, of which one is that her current choice is the best; she is inert as long as that theory beats any alternative theory according to a maximum likelihood criterion.",
keywords = "Case-based decisions, Inertia, Status quo, System 1, System 2",
author = "Itzhak Gilboa and Fan Wang",
note = "Publisher Copyright: {\textcopyright} 2019 Elsevier Inc.",
year = "2019",
month = may,
doi = "10.1016/j.jet.2019.02.009",
language = "אנגלית",
volume = "181",
pages = "289--308",
journal = "Journal of Economic Theory",
issn = "0022-0531",
publisher = "Academic Press Inc.",
}