Self-Signaling and Diagnostic Utility in Everyday Decision Making

Ronit Bodner · Dražen Prelec

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Decision-Making and Behavioral Economics Economic and Environmental Valuation Experimental Behavioral Economics Studies

Abstract

Abstract By choosing one alternative over another, we reveal something about our preferences, not just to others but also to ourselves. In a previous paper (Bodner and Prelec, 1997), we described how the model of a utility maximizing individual could be expanded to include diagnostic utility as a distinct source of satisfaction. We review the basic elements of that proposal here.

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