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A0906
Title: Decision-making: Conceptual levels of examination Authors:  Graham Mallard - Cheltenham College (United Kingdom) [presenting]
Abstract: The fundamental criticism levelled at behavioural economics is that, having not yet generated an overarching conceptual framework, it inevitably leads to works grounded on rather arbitrary and ad hoc behavioural assumptions. An overarching framework, then, is of paramount importance if the field is to present a feasible alternative to the standard rational choice approach. Adopting this stance as the starting point, a discussion of the conceptual levels at which decision making can be examined is presented. The standard approach in economics is to focus on the level of choice: the level at which an agent makes a selection from amongst a specified range of options, be they goods, bundles, lotteries or actions. The higher order level, in contrast, is that at which an agent decides the level of precision with which he subsequently makes such a particular choice. Based on the growing evidence of decision fatigue within the literature, it is proposed that (1) to assume global rationality at the level of choice is internally inconsistent, and (2) examining decision making behaviour at the higher order level rather than at the level of choice is a potentially fruitful avenue of future research, potentially overcoming the fundamental criticism of behavioural economics identified above. The possible nature of such study is discussed, drawing on a range of econometric analysis from the field of marketing as an example.