New ways to understand consumer decision-making are present at the LACEA-LAMES 2021
During the second day of the event, Dr. Francesca Molinari, professor of economics at Cornell University, led one of the keynote lectures with her research and proposal to analyze consumer decision-making differently.
Economists study the consumers’ behavior when they make a decision. Of course, the consumers want to maximize their well-being, but they also have a set of restrictions beyond the classical theory: It is related not only to the budget but also to the access to goods. Professor Francesa Molinari research focuses on how consumers make those decisions in a set of limited opportunities.
She presented a new model that allows the analysis of people’s decisions about discrete goods. Moreover, this new model allows finding the set of agents’ preferences along with the set of considerations that maximize their well-being. In this way, the model aims to explain how preferences change according to the group of considerations that the consumer takes into account to choose and, consequently, maximize their well-being.
Thus, this new model provides a new analysis tool that allows economists and policymakers to understand how the decision processes work at an individual level. The tool also allows to replicate them on a national scale, and therefore generate proposals and solutions to real problems.