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Limited consideration and limited data

Author

Listed:
  • Yuta Inoue

    (Graduate School of Economics, Waseda University)

  • Koji Shirai

    (School of Economics, Kwansei Gakuin University)

Abstract

This paper develops revealed preference tests for choices under limited consideration, allowing a partially observed data set. Our tests cover leading theories in the literature including the limited attention model, the rationalization model, the categorize-then-choose model, and the rational shortlisting model. It is worth noting that all our tests exploit a common structure of limited consideration models. We start from a data set collected from a single agent, and then extend the analysis to panel data in which the coincidence of consideration sets/preferences of agents are tested.

Suggested Citation

  • Yuta Inoue & Koji Shirai, 2016. "Limited consideration and limited data," Discussion Paper Series 149, School of Economics, Kwansei Gakuin University, revised Oct 2016.
    • Handle: RePEc:kgu:wpaper:149
    as

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    File URL: http://192.218.163.163/RePEc/pdf/kgdp149.pdf
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    References listed on IDEAS

    as
    1. de Clippel, Geoffroy & Rozen, Kareen, 2021. "Bounded rationality and limited datasets," Theoretical Economics, Econometric Society, vol. 16(2), May.
    2. Paola Manzini & Marco Mariotti, 2012. "Categorize Then Choose: Boundedly Rational Choice And Welfare," Journal of the European Economic Association, European Economic Association, vol. 10(5), pages 1141-1165, October.
    3. Christopher Tyson, 2013. "Behavioral implications of shortlisting procedures," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 41(4), pages 941-963, October.
    4. Yusufcan Masatlioglu & Daisuke Nakajima & Erkut Y. Ozbay, 2012. "Revealed Attention," American Economic Review, American Economic Association, vol. 102(5), pages 2183-2205, August.
    5. Loomes, Graham & Starmer, Chris & Sugden, Robert, 1991. "Observing Violations of Transitivity by Experimental Methods," Econometrica, Econometric Society, vol. 59(2), pages 425-439, March.
    6. Au, Pak Hung & Kawai, Keiichi, 2011. "Sequentially rationalizable choice with transitive rationales," Games and Economic Behavior, Elsevier, vol. 73(2), pages 608-614.
    7. Paola Manzini & Marco Mariotti, 2007. "Sequentially Rationalizable Choice," American Economic Review, American Economic Association, vol. 97(5), pages 1824-1839, December.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Yuta Inoue, 2020. "Rationalizing choice functions with a weak preference," Working Papers 2004, Waseda University, Faculty of Political Science and Economics.

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    More about this item

    Keywords

    Revealed preference; Limited consideration; Limited attention; Rational shortlisting; Categorization; Bounded rationality;
    All these keywords.

    JEL classification:

    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • D1 - Microeconomics - - Household Behavior
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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