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Categorical consideration and perception complementarity

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  • Edward Honda

    (Washington University in St. Louis)

Abstract

We introduce the notion of perception complementarity in a representation for random choice rules, which we call Complemented Perception Categorical Consideration Representation. The model is similar in nature to the perception-adjusted Luce model of Echenique et al. (Math Soc Sci 93:67–76, 2018), but allows perception to be menu-dependent. We provide a representation theorem and an identification result. Furthermore, we consider special cases of the model, including the case when it reduces down to the Random Consideration Set Rule of Manzini and Mariotti (Econometrica 82(3):1153–1176, 2014).

Suggested Citation

  • Edward Honda, 2021. "Categorical consideration and perception complementarity," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 71(2), pages 693-716, March.
    • Handle: RePEc:spr:joecth:v:71:y:2021:i:2:d:10.1007_s00199-020-01263-3
    DOI: 10.1007/s00199-020-01263-3
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    References listed on IDEAS

    as
    1. Ahumada, Alonso & Ülkü, Levent, 2018. "Luce rule with limited consideration," Mathematical Social Sciences, Elsevier, vol. 93(C), pages 52-56.
    2. Paola Manzini & Marco Mariotti, 2014. "Stochastic Choice and Consideration Sets," Econometrica, Econometric Society, vol. 82(3), pages 1153-1176, May.
    3. Matias D. Cattaneo & Xinwei Ma & Yusufcan Masatlioglu & Elchin Suleymanov, 2020. "A Random Attention Model," Journal of Political Economy, University of Chicago Press, vol. 128(7), pages 2796-2836.
    4. Richard L. Brady & John Rehbeck, 2016. "Menu‐Dependent Stochastic Feasibility," Econometrica, Econometric Society, vol. 84, pages 1203-1223, May.
    5. Aguiar, Victor H., 2017. "Random categorization and bounded rationality," Economics Letters, Elsevier, vol. 159(C), pages 46-52.
    6. Efe A. Ok, 2007. "Preliminaries of Real Analysis, from Real Analysis with Economic Applications," Introductory Chapters, in: Real Analysis with Economic Applications, Princeton University Press.
    7. Paulo Natenzon, 2019. "Random Choice and Learning," Journal of Political Economy, University of Chicago Press, vol. 127(1), pages 419-457.
    8. Echenique, Federico & Saito, Kota & Tserenjigmid, Gerelt, 2018. "The perception-adjusted Luce model," Mathematical Social Sciences, Elsevier, vol. 93(C), pages 67-76.
    9. Manzini, Paola & Mariotti, Marco, 2018. "Dual random utility maximisation," Journal of Economic Theory, Elsevier, vol. 177(C), pages 162-182.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Perception; Random choice; Representation theorem; Category;
    All these keywords.

    JEL classification:

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

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