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Decision Support and Forecasting Center CEMI RAS |
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Economic Theory
An Informational Model of Individual Choice
Boris Brodsky
The problem of rational individual choice in economics, sociology, and psychology is considered. The informational model of choice is proposed which enables us to study demand and supply functions of economic goods and to consider rational choice of symbolic goods and beliefs in sociology. A new informational measure of a good’s value is defined and analyzed in Theorem 1. Unlike the utilitarian approach to rational choice, the informational model gives answers to many paradoxes of choice and explains the phenomenon of preference reversal discovered in psychological tests. Keywords: rational choice; informational model
(261 K English Version)
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