Choosing on Influence

Financial support by the Spanish Ministry of Science and Innovation through Grant ECO2008-04756 (Grupo Consolidado-C), FEDER and also the Scottish Institute of Research in Economics (SIRE) is acknowledged.Interaction, the act of mutual influence, is an essential part of daily life and economic decisions. This paper presents an individual decision procedure for interacting individuals. According to our model, individuals seek influence from each other for those issues that they cannot solve on their own. Following a choice-theoretic approach, we provide simple properties that aid to detect interacting individuals. Revealed preference analysis not only grants underlying preferences but also the influence acquired.Publisher PDFPeer reviewe