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Shortlisting procedure with a limited capacity

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  • Geng, Sen
  • Özbay, Erkut Y.

Abstract

A decision maker, who is overwhelmed by the number of available alternatives, limits her consideration. We investigate a model where a decision maker’s capacity determines whether she is overwhelmed: She considers all the available alternatives if their number does not exceed her capacity; otherwise, she applies a shortlisting procedure to reduce the number of alternatives to within her capacity. We show how to deduce the decision maker’s capacity, her preference and the alternatives that she considers from the observed behavior. Furthermore, we provide the necessary and sufficient conditions for a consideration function to be derived by the shortlisting procedure with a limited capacity.

Suggested Citation

  • Geng, Sen & Özbay, Erkut Y., 2021. "Shortlisting procedure with a limited capacity," Journal of Mathematical Economics, Elsevier, vol. 94(C).
    • Handle: RePEc:eee:mateco:v:94:y:2021:i:c:s0304406820301245
    DOI: 10.1016/j.jmateco.2020.11.003
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    Cited by:

    1. Geng, Sen, 2022. "Limited consideration model with a trigger or a capacity," Journal of Mathematical Economics, Elsevier, vol. 101(C).
    2. Davide Carpentiere & Angelo Petralia, 2023. "Identification of consideration sets from choice data," Papers 2302.00978, arXiv.org, revised Mar 2024.

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