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Behavioral Implications of Shortlisting Procedures

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  • Christopher J. Tyson

    (Queen Mary, University of London)

Abstract

We consider two-stage "shortlisting procedures" in which the menu of alternatives is first pruned by some process or criterion and then a binary relation is maximized. Given a particular first-stage process, our main result supplies a necessary and sufficient condition for choice data to be consistent with a procedure in the designated class. This result applies to any class of procedures with a certain lattice structure, including the cases of "consideration filters," "satisficing with salience effects," and "rational shortlist methods." The theory avoids background assumptions made for mathematical convenience; in this and other respects following Richter's classical analysis of preference-maximizing choice in the absence of shortlisting.

Suggested Citation

  • Christopher J. Tyson, 2012. "Behavioral Implications of Shortlisting Procedures," Working Papers 697, Queen Mary University of London, School of Economics and Finance.
    • Handle: RePEc:qmw:qmwecw:697
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    Cited by:

    1. Horan, Sean, 2016. "A simple model of two-stage choice," Journal of Economic Theory, Elsevier, vol. 162(C), pages 372-406.
    2. 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.
    3. Christopher Tyson, 2015. "Satisficing behavior with a secondary criterion," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 44(3), pages 639-661, March.
    4. de Clippel, Geoffroy & Rozen, Kareen, 2021. "Bounded rationality and limited datasets," Theoretical Economics, Econometric Society, vol. 16(2), May.
    5. Domenico Cantone & Alfio Giarlotta & Stephen Watson, 2019. "Congruence relations on a choice space," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 52(2), pages 247-294, February.
    6. Alvaro Sandroni & Leo Katz, 2024. "The leveling axiom," Theory and Decision, Springer, vol. 96(1), pages 135-152, February.
    7. Lin, Lihui, 2021. "Does the procedure matter?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 90(C).
    8. Yuta Inoue & Koji Shirai, 2016. "Limited consideration and limited data," Discussion Paper Series 149, School of Economics, Kwansei Gakuin University, revised Oct 2016.
    9. Freeman, David J., 2017. "Preferred personal equilibrium and simple choices," Journal of Economic Behavior & Organization, Elsevier, vol. 143(C), pages 165-172.
    10. Guy Barokas & Burak Ünveren, 2022. "Impressionable Rational Choice: Revealed-Preference Theory with Framing Effects," Mathematics, MDPI, vol. 10(23), pages 1-19, November.
    11. Thomas Demuynck & Christian Seel, 2018. "Revealed Preference with Limited Consideration," American Economic Journal: Microeconomics, American Economic Association, vol. 10(1), pages 102-131, February.
    12. Christopher J. Tyson, 2018. "Rationalizability of menu preferences," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 65(4), pages 917-934, June.
    13. Lleras, Juan Sebastián & Masatlioglu, Yusufcan & Nakajima, Daisuke & Ozbay, Erkut Y., 2017. "When more is less: Limited consideration," Journal of Economic Theory, Elsevier, vol. 170(C), pages 70-85.
    14. 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.
    15. Rochanahastin, Nuttaporn, 2020. "Assessing axioms of theories of limited attention," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 84(C).
    16. Domenico Cantone & Alfio Giarlotta & Stephen Watson, 2021. "Choice resolutions," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 56(4), pages 713-753, May.
    17. Yusufcan Masatlioglu & Elchin Suleymanov, 2021. "Decision making within a product network," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 71(1), pages 185-209, February.
    18. Juan Lleras & Yusufcan Masatlioglu & Daisuke Nakajima & Erkut Ozbay, 2021. "Path-Independent Consideration," Games, MDPI, vol. 12(1), pages 1-10, March.
    19. 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.
    20. 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.
    21. García-Sanz, María D. & Alcantud, José Carlos R., 2015. "Sequential rationalization of multivalued choice," Mathematical Social Sciences, Elsevier, vol. 74(C), pages 29-33.
    22. Bhavook Bhardwaj & Kriti Manocha, 2021. "Choice by Rejection," Papers 2108.07424, arXiv.org.
    23. 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.
    24. Cuhadaroglu, Tugce, 2017. "Choosing on influence," Theoretical Economics, Econometric Society, vol. 12(2), May.

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    More about this item

    Keywords

    Attention; Complete lattice; Consideration set; Revealed preference;
    All these keywords.

    JEL classification:

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

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