Limited consideration and limited data: revealed preference tests and observable restrictions

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

No 176, 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 are based on a common structure of various limited consideration models, and cover leading theories in the literature including the limited attention model, the rationalization model, the categorize-then-choose model, and the rational shortlist model. While tests involve combinatorial calculation, by applying the backtracking method, we perform simulations to numerically compare observable restrictions of various models. As a result, we find remarkable differences in observable restrictions across models.

Keywords: Revealed preference; Limited consideration; Limited attention; Rational shortlisting; Bounded rationality; Bronars test (search for similar items in EconPapers)
JEL-codes: C6 D1 D8 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2018-03, Revised 2018-03
New Economics Papers: this item is included in nep-mic and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://192.218.163.163/RePEc/pdf/kgdp176.pdf First version, 2018 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kgu:wpaper:176

Access Statistics for this paper

More papers in Discussion Paper Series from School of Economics, Kwansei Gakuin University Contact information at EDIRC.
Bibliographic data for series maintained by Toshihiro Okada ().