Stochastic Choice and Consideration Sets

Paola Manzini and Marco Mariotti

No 2013-28, SIRE Discussion Papers from Scottish Institute for Research in Economics (SIRE)

Abstract: We model a boundedly rational agent who suffers from limited attention. The agent considers each feasible alternative with a given (unobservable) probability, the attention parameter, and then chooses the alternative that maximises a preference relation within the set of considered alternatives. We show that this random choice rule is the only one for which the impact of removing an alternative on the choice probability of any other alternative is asymmetric and menu independent. Both the preference relation and the attention parameters are identi fied uniquely by stochastic choice data.

Keywords: Discrete choice; Random utility; Logit model; Luce model; Consideration sets; bounded rationality; revealed preferences (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-dcm, nep-mic and nep-upt
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Citations: View citations in EconPapers (7)

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Related works:
Journal Article: Stochastic Choice and Consideration Sets (2014)
Working Paper: Stochastic Choice and Consideration Sets (2012)
Working Paper: Stochastic Choice and Consideration Sets (2012)
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