Identification of consideration sets from choice data

We show that many bounded rationality patterns of choice can be alternatively represented as testable models of limited consideration, and we elicit the features of the associated unobserved consideration sets from the observed choice. Moreover, we characterize some testable choice procedures in whi...

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Bibliographic Details
Published in:arXiv.org 2024-03
Main Authors: Carpentiere, Davide, Petralia, Angelo
Format: Article
Language:English
Subjects:
Representations
Online Access:Get full text
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Summary:We show that many bounded rationality patterns of choice can be alternatively represented as testable models of limited consideration, and we elicit the features of the associated unobserved consideration sets from the observed choice. Moreover, we characterize some testable choice procedures in which the DM considers as few alternatives as possible. These properties, compatible with the empirical evidence, allow the experimenter to uniquely infer the DM's unobserved consideration sets from irrational features of the observed behavior.
ISSN:2331-8422