Güney, BegümRichter, M.Tsur, M.2018-10-082018-10-082018-070022-0531http://hdl.handle.net/10679/5999https://doi.org/10.1016/j.jet.2018.05.003Numerous studies and experiments suggest that aspirations for desired but perhaps unavailable alternatives influence decisions. A common finding is that an unavailable aspiration steers agents to choose similar available alternatives. We propose and axiomatically characterize a choice theory consistent with this aspirational effect. Similarity is modeled using a subjective metric derived from choice data. This model offers implications for consumer welfare and its distribution between rich and poor when firms compete for aspirational agents, and a novel rationale for sales.engrestrictedAccessarticle17693595600043975150002910.1016/j.jet.2018.05.003ChoiceSimilarityAspirationsConsumer welfare2-s2.0-85047600680