Stochastic Choice and Consideration Sets

Paola Manzini and Marco Mariotti

Econometrica, 2014, vol. 82, issue 3, 1153-1176

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 maximizes 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 identified uniquely by stochastic choice data.

Date: 2014
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Citations: View citations in EconPapers (174)

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https://doi.org/10.3982/ECTA10575

Related works:
Working Paper: Stochastic Choice and Consideration Sets (2013)
Working Paper: Stochastic Choice and Consideration Sets (2012)
Working Paper: Stochastic Choice and Consideration Sets (2012)
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