Toward a positive theory of consumer choice.pdf

anizationl(1980)3960.©North-HollandTOWARDAPOSITIVETHEORYOFCONSUMERCHOICERichardTHALER*CorneflUniversity,ithaca,NY14853,USARecei,)edOctober1978,,-':underweightingofopportunitycosts,failuretoignoresunkcosts,searchbehavior,choosingnottochooseandregret,mitmentandself-(itdescribeswhatrationalconsumersshoulddo)economistsarguethatitalsoserveswellasadescriptivetheory(itpredictswhatconsumersinfactdo).Thispaperarguesthatexclusiverelianceonthenormativetheoryleadseconomiststomakesystematic,(small),thesignofthesubstitutioneffect,themost*,toonumeroustonameindividually,attheCenterforNavalAnalyses,CornellUniversity,TheNationalBureauofEconomicResearch-West,DecisionResearch,,AmosTversky,,ThomasRussell,,responsibilityforremainingdeficienciesistheauthor',whilehewasavisitingscholaratNBER-