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Inferring Rationales from Choice: Identification for Rational Shortlist Methods

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  • Rohan Dutta
  • Sean Horan

Abstract

A wide variety of choice behavior inconsistent with preference maximization can be explained by Manzini and Mariotti's Rational Shortlist Methods. Choices are made by sequentially applying a pair of asymmetric binary relations (rationales) to eliminate inferior alternatives. Manzini and Mariotti's axiomatic treatment elegantly describes which behavior can be explained by this model. However, it leaves unanswered what can be inferred, from observed behavior, about the underlying rationales. Establishing this connection is fundamental not only for applied and empirical work but also for meaningful welfare analysis. Our results tightly characterize the surprisingly rich relationship between behavior and the underlying rationales. (JEL D11, D12, D83, M37)

Suggested Citation

  • Rohan Dutta & Sean Horan, 2015. "Inferring Rationales from Choice: Identification for Rational Shortlist Methods," American Economic Journal: Microeconomics, American Economic Association, vol. 7(4), pages 179-201, November.
    • Handle: RePEc:aea:aejmic:v:7:y:2015:i:4:p:179-201
    Note: DOI: 10.1257/mic.20130118
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    Cited by:

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    2. Matsuki, Jun & Tadenuma, Koichi & 蓼沼, 宏一, 2013. "Choice via Grouping Procedures," CCES Discussion Paper Series 52, Center for Research on Contemporary Economic Systems, Graduate School of Economics, Hitotsubashi University.
    3. Juan Lleras & Yusufcan Masatlioglu & Daisuke Nakajima & Erkut Ozbay, 2021. "Path-Independent Consideration," Games, MDPI, vol. 12(1), pages 1-10, March.
    4. Horan, Sean & Sprumont, Yves, 2022. "Two-stage majoritarian choice," Theoretical Economics, Econometric Society, vol. 17(2), May.
    5. Dutta, Rohan, 2020. "Gradual pairwise comparison and stochastic choice," Theoretical Economics, Econometric Society, vol. 15(4), November.
    6. Horan, Sean, 2016. "A simple model of two-stage choice," Journal of Economic Theory, Elsevier, vol. 162(C), pages 372-406.
    7. Lleras, Juan Sebastián & Masatlioglu, Yusufcan & Nakajima, Daisuke & Ozbay, Erkut Y., 2017. "When more is less: Limited consideration," Journal of Economic Theory, Elsevier, vol. 170(C), pages 70-85.
    8. Özgür Kıbrıs & Yusufcan Masatlioglu & Elchin Suleymanov, 2023. "A theory of reference point formation," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 75(1), pages 137-166, January.
    9. Cuhadaroglu, Tugce, 2017. "Choosing on influence," Theoretical Economics, Econometric Society, vol. 12(2), May.
    10. García-Sanz, María D. & Alcantud, José Carlos R., 2015. "Sequential rationalization of multivalued choice," Mathematical Social Sciences, Elsevier, vol. 74(C), pages 29-33.
    11. Geng, Sen & Özbay, Erkut Y., 2021. "Shortlisting procedure with a limited capacity," Journal of Mathematical Economics, Elsevier, vol. 94(C).
    12. Geng, Sen, 2022. "Limited consideration model with a trigger or a capacity," Journal of Mathematical Economics, Elsevier, vol. 101(C).
    13. Qin, Dan, 2021. "Exclusive shortlisting choice with reference," Economics Letters, Elsevier, vol. 198(C).
    14. Gent Bajraj & Levent Ülkü, 2015. "Choosing two finalists and the winner," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 45(4), pages 729-744, December.
    15. Freeman, David J., 2017. "Preferred personal equilibrium and simple choices," Journal of Economic Behavior & Organization, Elsevier, vol. 143(C), pages 165-172.
    16. Qin, Dan, 2024. "A simple model of two-stage choice," Journal of Mathematical Economics, Elsevier, vol. 112(C).
    17. Giarlotta, Alfio & Petralia, Angelo & Watson, Stephen, 2023. "Context-sensitive rationality: Choice by salience," Journal of Mathematical Economics, Elsevier, vol. 109(C).
    18. Horan, Sean & Sprumont, Yves, 2016. "Welfare criteria from choice: An axiomatic analysis," Games and Economic Behavior, Elsevier, vol. 99(C), pages 56-70.

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    More about this item

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising

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