Year of Graduation
A Model of Moody Choice
Joint HSE-NES Undergraduate Program in Economics
We study a decision maker whose behavior is influenced by her random mood. Faced with a menu, the decision maker randomly draws a set of alternatives for which she is in the mood. If she is in the mood for no feasible alternative, then the decision maker abstains. Otherwise she maximizes her preference over the intersection of the menu and her mood. We characterize this model using simple axioms and highlight its relationship with extant models. We also discuss a related model which does not allow abstention. In this case, if the intersection of the menu and the mood is empty, the decision maker maximizes her preference over the whole menu.