arXiv subjects

Tri Phu Vu

Publications and source records attributed to Tri Phu Vu.

3 recordsLinked to original sources

arXiv2026

Decision Making under Dual-System Thinking

This paper introduces the Dual-System Thinking (DST) model, a decision-theoretic framework that integrates psychological dual-process theories into economic modeling. A single cognitive weight parameter governs the relative influence of the automatic and deliberate cognitive systems. Even the simplest form of DST exhibits distinct behavioral patterns, suggesting that the psychological insights of dual-system theory offer a distinct and valuable approach to modeling choice behavior. Empirically, we show that the model can accommodate several empirical findings and outperform well-known models in discrete choice analysis across various contexts. We also apply the model to study optimal list design and rationality in stochastic environments.

econ.TH↗

arXiv2025

Random Collection

This paper studies choice situations in which a decision maker can choose multiple alternatives. Given a menu of available options, the decision maker selects a subset of the menu with certain probabilities. We employ an axiomatic approach to characterize various parametric models in the literature. Our results elucidate the implications of the functional form assumptions and shed light on the distinctions between models. The behavioral postulates offer simple tools for testing and falsifying the choice procedures used by the decision maker and reveal a close connection between models that are seemingly unrelated.

econ.TH↗

arXiv2025

Noisy Certification in a Duopolistic Setting with Loss-Averse Buyers

This paper studies how noise in certification technology affects seller profits in a duopoly with unobservable product quality. We identify two opposing effects of noisy certification. First, it reduces the informativeness of certification outcomes, homogenizing buyers' beliefs and limiting the scope for vertical differentiation. Second, it introduces randomness into buyer perceptions, endogenously generating differentiation between otherwise similar products. When buyers are risk-neutral, the first effect dominates, reducing seller profits. However, when buyers are loss averse, the negative impact of reduced informativeness is mitigated, and noisy certification can increase profits relative to accurate certification. Experimentally, treatments with inaccurate certification are more profitable than those with accurate certification, particularly in settings with intense competition.

econ.GN↗