Limited consideration and limited data

Yuta Inoue () and Koji Shirai ()
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Yuta Inoue: Graduate School of Economics, Waseda University
Koji Shirai: School of Economics, Kwansei Gakuin University

No 149, Discussion Paper Series from School of Economics, Kwansei Gakuin University

Abstract: This paper develops revealed preference tests for choices under limited consideration, allowing a partially observed data set. Our tests cover leading theories in the literature including the limited attention model, the rationalization model, the categorize-then-choose model, and the rational shortlisting model. It is worth noting that all our tests exploit a common structure of limited consideration models. We start from a data set collected from a single agent, and then extend the analysis to panel data in which the coincidence of consideration sets/preferences of agents are tested.

Keywords: Revealed preference; Limited consideration; Limited attention; Rational shortlisting; Categorization; Bounded rationality (search for similar items in EconPapers)
JEL-codes: C6 D1 D8 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2016-10, Revised 2016-10
New Economics Papers: this item is included in nep-hme and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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http://192.218.163.163/RePEc/pdf/kgdp149.pdf First version, 2016 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:kgu:wpaper:149

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