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When is coarseness not a curse? Comparative statics of the coarse random utility model

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  • Horan, Sean
  • Manzini, Paola
  • Mariotti, Marco

Abstract

In a variety of choice environments, perception is both noisy and coarse. That is, the agent perceives the true ranking of the objects of choice with error; and, in addition, the perceived values can only be discriminated coarsely. Reasons for coarse perception include limitations in sensory perception, memory function, or the communication technology used by expert advisors.

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  • Horan, Sean & Manzini, Paola & Mariotti, Marco, 2022. "When is coarseness not a curse? Comparative statics of the coarse random utility model," Journal of Economic Theory, Elsevier, vol. 202(C).
    • Handle: RePEc:eee:jetheo:v:202:y:2022:i:c:s0022053122000357
    DOI: 10.1016/j.jet.2022.105445
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    More about this item

    Keywords

    Stochastic choice; Imperfect perception;

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles

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