Consumer Choice and Revealed Bounded Rationality
AbstractWe study two boundedly rational procedures in consumer behavior. We show that these procedures can be detected by conditions on observable demand data of the same type as standard revealed preference axioms. This provides the basis for a non-parametric analysis of boundedly rational consumer behavior mirroring the classical one for utility maximization.
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Bibliographic InfoPaper provided by Queen Mary, University of London, School of Economics and Finance in its series Working Papers with number 571.
Date of creation: Sep 2006
Date of revision:
Bounded rationality; Revealed preference; Consumer choice;
Find related papers by JEL classification:
- D1 - Microeconomics - - Household Behavior
- D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-09-23 (All new papers)
- NEP-CBE-2006-09-23 (Cognitive & Behavioural Economics)
- NEP-DCM-2006-09-23 (Discrete Choice Models)
- NEP-KNM-2006-09-23 (Knowledge Management & Knowledge Economy)
- NEP-MIC-2006-09-23 (Microeconomics)
- NEP-MKT-2006-09-23 (Marketing)
- NEP-UPT-2006-09-23 (Utility Models & Prospect Theory)
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- Kfir Eliaz & Michael Richter & Ariel Rubinstein, 2011. "Choosing the two finalists," Economic Theory, Springer, vol. 46(2), pages 211-219, February.
- Robert R. Routledge, 2009. "Testable implications of the Bertrand model," The School of Economics Discussion Paper Series 0918, Economics, The University of Manchester.
- Nakajima, Daisuke & Masatlioglu, Yusufcan, 2013. "Choice by iterative search," Theoretical Economics, Econometric Society, vol. 8(3), September.
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