IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2407.01528.html
   My bibliography  Save this paper

Random Attention and Unobserved Reference Alternatives

Author

Listed:
  • Varun Bansal

Abstract

In this paper I develop and characterize a random attention model with unobserved reference alternatives. The decision maker pays attention to different subsets of the available set of alternatives randomly. The reference alternatives are exactly those alternatives that are always paid attention to, i.e. they are attention-privileged and these alternatives are supposed to be unknown to the outside observer. The characterization allows for a complete identification of the reference alternatives and a coarse identification of the underlying preferences. I then restrict the model by considering the independent random attention function and provide a complete identification of the underlying preferences as well.

Suggested Citation

  • Varun Bansal, 2024. "Random Attention and Unobserved Reference Alternatives," Papers 2407.01528, arXiv.org, revised Sep 2024.
    • Handle: RePEc:arx:papers:2407.01528
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2407.01528
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Paola Manzini & Marco Mariotti, 2007. "Sequentially Rationalizable Choice," American Economic Review, American Economic Association, vol. 97(5), pages 1824-1839, December.
    2. Paola Manzini & Marco Mariotti, 2014. "Stochastic Choice and Consideration Sets," Econometrica, Econometric Society, vol. 82(3), pages 1153-1176, May.
    3. Kovach, Matthew & Suleymanov, Elchin, 2023. "Reference dependence and random attention," Journal of Economic Behavior & Organization, Elsevier, vol. 215(C), pages 421-441.
    4. Tserenjigmid, Gerelt, 2019. "Choosing with the worst in mind: A reference-dependent model," Journal of Economic Behavior & Organization, Elsevier, vol. 157(C), pages 631-652.
    5. Sagi, Jacob S., 2006. "Anchored preference relations," Journal of Economic Theory, Elsevier, vol. 130(1), pages 283-295, September.
    6. Dean, Mark & Kıbrıs, Özgür & Masatlioglu, Yusufcan, 2017. "Limited attention and status quo bias," Journal of Economic Theory, Elsevier, vol. 169(C), pages 93-127.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kovach, Matthew & Suleymanov, Elchin, 2023. "Reference dependence and random attention," Journal of Economic Behavior & Organization, Elsevier, vol. 215(C), pages 421-441.
    2. 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.
    3. Andrew Ellis & Yusufcan Masatlioglu, 2022. "Choice with Endogenous Categorization," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 89(1), pages 240-278.
    4. Furtado, Bruno A. & Nascimento, Leandro & Riella, Gil, 2023. "Rational choice with full-comparability domains," Journal of Economic Behavior & Organization, Elsevier, vol. 216(C), pages 124-135.
    5. Yuta Inoue & Koji Shirai, 2023. "On the observable restrictions of limited consideration models: theory and application," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 75(3), pages 695-715, April.
    6. Gleb Koshevoy & Ernesto Savaglio, 2017. "Enveloped choice functions and path-independent rationality," Department of Economics University of Siena 765, Department of Economics, University of Siena.
    7. Kashaev, Nail & Aguiar, Victor H., 2022. "A random attention and utility model," Journal of Economic Theory, Elsevier, vol. 204(C).
    8. Ian Chadd & Emel Filiz-Ozbay & Erkut Y. Ozbay, 2021. "The relevance of irrelevant information," Experimental Economics, Springer;Economic Science Association, vol. 24(3), pages 985-1018, September.
    9. Valentino Dardanoni & Paola Manzini & Marco Mariotti & Christopher J. Tyson, 2020. "Inferring Cognitive Heterogeneity From Aggregate Choices," Econometrica, Econometric Society, vol. 88(3), pages 1269-1296, May.
    10. Kremena Valkanova, 2024. "Markov Stochastic Choice," Papers 2410.22001, arXiv.org.
    11. Xiaosheng Mu, 2021. "Sequential Choice with Incomplete Preferences," Working Papers 2021-35, Princeton University. Economics Department..
    12. Alfio Giarlotta & Angelo Petralia, 2024. "Simon’s bounded rationality," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 47(1), pages 327-346, June.
    13. Valentino Dardanoni & Paola Manzini & Marco Mariotti & Christopher J. Tyson, 2020. "Inferring Cognitive Heterogeneity From Aggregate Choices," Econometrica, Econometric Society, vol. 88(3), pages 1269-1296, May.
    14. Amnon Rapoport & Darryl A. Seale & Leonidas Spiliopoulos, 2023. "Progressive stopping heuristics that excel in individual and competitive sequential search," Theory and Decision, Springer, vol. 94(1), pages 135-165, January.
    15. Yuta Inoue & Koji Shirai, 2018. "Limited consideration and limited data: revealed preference tests and observable restrictions," Discussion Paper Series 176, School of Economics, Kwansei Gakuin University, revised Mar 2018.
    16. Apesteguia, Jose & Ballester, Miguel A., 2013. "Choice by sequential procedures," Games and Economic Behavior, Elsevier, vol. 77(1), pages 90-99.
    17. Yuta Inoue & Koji Shirai, 2018. "Limited consideration and limited data: revealed preference tests and observable restrictions," Discussion Paper Series 176-2, School of Economics, Kwansei Gakuin University, revised Aug 2019.
    18. Yazdanabad, Hadi Pahlevan, 2024. "Justification within and between social contexts with the possibility of choice deferral," Journal of Mathematical Economics, Elsevier, vol. 112(C).
    19. Caplin, Andrew, 2014. "Rational inattention and revealed preference: The data-theoretic approach to economic modeling," Research in Economics, Elsevier, vol. 68(4), pages 295-305.
    20. Kovach, Matthew & Ülkü, Levent, 2020. "Satisficing with a variable threshold," Journal of Mathematical Economics, Elsevier, vol. 87(C), pages 67-76.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:2407.01528. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.