 Limited consideration model with a trigger or a capacityJournal of Mathematical Economics, 2022, vol. 101, issue C Abstract: When making a choice from a menu, individuals sometimes consider only a subset of the menu and choose one alternative according to their preferences from the subset. We provide a unified model that formalizes two aspects of such consider-then-choose procedures: the circumstances under which individuals have limited consideration and the structures that are imposed on consideration sets in the presence of limited consideration. Full consideration is guaranteed when the size of a menu does not exceed a cutoff number. Limited consideration may occur or must occur when the size of a menu exceeds the cutoff number, which is correspondingly interpreted as the trigger of initiating limited consideration or the capacity of full consideration. We also assume that the consideration function from a menu to its consideration set satisfies an intuitive property that captures a range of real-world heuristics to form consideration sets. We provide a characterization of the model. Keywords: Limited consideration; Full consideration; Trigger; Capacity (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:mateco:v:101:y:2022:i:c:s0304406822000441 DOI: 10.1016/j.jmateco.2022.102692 Access Statistics for this article Journal of Mathematical Economics is currently edited by Atsushi (A.) Kajii More articles in Journal of Mathematical Economics from Elsevier |
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