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Three Essays on Microeconomics: Bounded Rationality, Choice Procedures and Customer Loyalty

Abstract : Rational choice theory is the benchmark for Economics to model individual choice behavior because the utility function allows a practical representation of decision making. In reality, however, people do not always satisfy the consistency conditions imposed by the theory. Many common behaviors are then excluded, even if they are a form of bounded rationality. The first part of this PhD Thesis is devoted to the formal characterization of specific choice behaviors where the agent has limited capabilities and may be affected by a cognitive bias. Chapter 1 examines the choice behavior of an agent who faces incomparable alternatives. Two classic properties are weakened: completeness and transitivity of preferences. Several representation theorems are proposed. Chapter 2 focuses on the choice from lists when the agent can partially consider the available options. The structured presentation of alternatives highlights a possible limited attention. This choice behavior is rationalized and practical identification of individual parameters are investigated. In the second part, this PhD Thesis analyzes the determinants of customer loyalty with an econometric study based on real data from a distributor of office supplies. Chapter 3 focuses on the factors that influence repeat purchases by a consumer, that is his Customer Lifetime Duration. The effects of the purchase behavior and loyalty program on the survival of new customers are estimated. The effectiveness of the incentive system is evaluated.
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Submitted on : Tuesday, July 23, 2013 - 4:02:18 PM
Last modification on : Wednesday, January 23, 2019 - 10:29:36 AM
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  • HAL Id : pastel-00847473, version 1



Julie Tisserond. Three Essays on Microeconomics: Bounded Rationality, Choice Procedures and Customer Loyalty. Economics and Finance. Ecole Polytechnique X, 2012. English. ⟨pastel-00847473⟩



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