ABSTRACT
Classical choice theories assume choice behavior is based on value maximization computed over the entire choice set. However, empirical evidence has revealed violations of axioms of rational choice that cannot be explained by value maximization. We argue that choice behavior can be reconceptualized as value maximization constrained by categorization processes, and describe a neural network model developed to account for key empirical findings. The model simulates two important phenomena that have been construed as irrational choice behavior, namely, the similarity effect and the attraction effect. We argue that there are important commonalities among choice behavior, categorization and perception.
