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Partial Knowledge Restrictions on the Two-Stage Threshold Model of Choice

Author

Listed:
  • Paola Manzini

    (University of St. Andrews and IZA)

  • Marco Mariotti

    (Queen Mary University of London)

  • Christopher J. Tyson

    (Queen Mary University of London)

Abstract

In the context of the two-stage threshold model of decision making, with the agent's choices determined by the interaction of three "structural variables," we study the restrictions on behaviour that arise when one or more variables are exogenously known. Our results supply necessary and sufficient conditions for consistency with the model for all possible states of partial knowledge, and for both single- and multi-valued choice functions.

Suggested Citation

  • Paola Manzini & Marco Mariotti & Christopher J. Tyson, 2016. "Partial Knowledge Restrictions on the Two-Stage Threshold Model of Choice," Working Papers 790, Queen Mary University of London, School of Economics and Finance.
    • Handle: RePEc:qmw:qmwecw:790
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    References listed on IDEAS

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    More about this item

    Keywords

    Attention; Revealed preference; Salience; Satisficing;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles

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