Stochastic choice and consideration sets

Paola Manzini; Marco Mariotti

doi:10.3982/ECTA10575

Stochastic choice and consideration sets

Paola Manzini, Marco Mariotti

Research output: Contribution to journal › Article › peer-review

Abstract

We model a boundedly rational agent who suffers from limited attention. The agent considers each feasible alternative with a given (unobservable) probability, the attention parameter, and then chooses the alternative that maximises a preference relation within the set of considered alternatives. We show that this random choice rule is the only one for which the impact of removing an alternative on the choice probability of any other alternative is asymmetric and menu independent. Both the preference relation and the attention parameters are identified uniquely by stochastic choice data.

Original language	English
Pages (from-to)	1153-1176
Number of pages	24
Journal	Econometrica
Volume	89
Issue number	3
Early online date	2 Jun 2013
DOIs	https://doi.org/10.3982/ECTA10575
Publication status	Published - 2014

Keywords

Discrete choice
Random utility
Logit model
Luce model
Consideration sets
Bounded rationality
Revealed preferences

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10.3982/ECTA10575

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Cite this

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KW - Revealed preferences

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Stochastic choice and consideration sets

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Stochastic choice and consideration sets

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