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Consumer choice and revealed bounded rationality

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  • Paola Manzini
  • Marco Mariotti

Abstract

We study two boundedly rational procedures in consumer behavior. We show that these procedures can be detected by conditions on observable demand data of the same type as standard revealed preference axioms. This provides the basis for a non-parametric analysis of boundedly rational consumer behavior mirroring the classical one for utility maximization.
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  • Paola Manzini & Marco Mariotti, 2009. "Consumer choice and revealed bounded rationality," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 41(3), pages 379-392, December.
    • Handle: RePEc:spr:joecth:v:41:y:2009:i:3:p:379-392
    DOI: 10.1007/s00199-008-0389-x
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    Cited by:

    1. Robert R. Routledge, 2009. "Testable implications of the Bertrand model," Economics Discussion Paper Series 0918, Economics, The University of Manchester.
    2. Kfir Eliaz & Michael Richter & Ariel Rubinstein, 2011. "Choosing the two finalists," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 46(2), pages 211-219, February.
    3. Christopher Kops, 2018. "(F)Lexicographic shortlist method," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 65(1), pages 79-97, January.
    4. , & ,, 2013. "Choice by iterative search," Theoretical Economics, Econometric Society, vol. 8(3), September.
    5. Guy Barokas, 2020. "Identifying changing taste from demand data via golden eggs," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 54(1), pages 47-68, January.
    6. Jones, Robert Paul & Camp, Kerri M. & Fairhurst, Ann E., 2015. "Temporal and financial risk assessments: How time and money constrain shopper behavior and influence purchase solutions," Journal of Retailing and Consumer Services, Elsevier, vol. 27(C), pages 154-163.
    7. Büyükdağ, Naci & Soysal, Ayşe Nur & Ki̇tapci, Olgun, 2020. "The effect of specific discount pattern in terms of price promotions on perceived price attractiveness and purchase intention: An experimental research," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    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.

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    More about this item

    Keywords

    Bounded rationality; Revealed preference; Consumer choice; D01;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory

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