ICPS

2021 APS Virtual Convention

A Rational Account of the Repulsion Effect

Virtual

Oral · Behavioral Economics

The repulsion effect is a puzzling violation of rationality in which the presence of an inferior option decreases the attractiveness of the option that dominates it. We formally develop and experimentally validate a normative theory of this anomaly, which can explain many of its previously observed properties.

Chairs & Discussants

  • Rahul BhuiSpeaker
    MIT Sloan School of Management
  • Yang XiangDiscussant
    MIT