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What Are the Five Theorems of Selection Logic?

Five theorems derived from the axioms form the normative basis for consumer choice

Question

What are the five theorems of Selection Logic?

Answer

The five theorems are: Matching, Cognitive Budget, Need Consistency, Selection Efficacy, and Selection Immunity. They are derived from the three axioms and together form the normative basis for consumer choice.

Theorem 1: Matching

Under finite options, rational choice should align the chosen option with one's needs. See Theorem 1 (Matching).

Theorem 2: Cognitive Budget

Decision-makers should allocate cognitive resources wisely and avoid over-spending on low-stakes decisions. See Theorem 2 (Cognitive Budget).

Theorem 3: Need Consistency

Need clarification is a prerequisite for effective decisions; inconsistency leads to choices that drift from goals. See Theorem 3 (Need Consistency).

Theorem 4: Selection Efficacy

Following a normative process improves selection outcomes. See Theorem 4 (Selection Efficacy).

Theorem 5: Selection Immunity

Systematic methods reduce the impact of marketing and cognitive biases on decisions. See Theorem 5 (Selection Immunity).

Further Reading

References

  1. Simon, H. A. (1955). A behavioral model of rational choice. Quarterly Journal of Economics, 69(1), 99–18.[source]
  2. Kahneman, D. (2011). Thinking, Fast and Slow. Farrar, Straus and Giroux.[source]