タイトル：Attribute-Based Inferences in Subjective State Spaces: A Dissatisficing-Averse Utility Representation
This paper studies preferences over menus, and presents a theory of attribute-based inferences, i.e., a decision-making based on attributes of alternatives. Attribute-based inferences can often lead to systematic violations of rationality, namely, WARP (Weak Axiom of Revealed Preference). The Compromise Effect (Simonson (1989)) is a typical example for the deviation from WARP. In this paper, we introduce plausible new axioms for attribute-based inferences: Dominance, Dissatisfaction, and Contemplation. We find out that the aversion to the increase in the trade-off across attributes, stated as Dissatisfaction can lead to the Compromise effect. The three key axioms characterize a dissatisficing-averse utility representation, in which the decision maker determines the optimal weight on the objective attribute space to minimize the deviation from each attribute-best option. Moreover, by imposing on Dominance, we argue that the Attraction Effect (Huber et al. (1982)), another typical behavioral regularity, may stem from a different cognitive mechanism. As an extended analysis, this paper studies a pair of preferences over menus and choice correspondences to provide behavioral foundations for ex-post choices of the dissatisficing-averse utility representation, and to study a relationship between menu-preferences and choices explicitly.