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Search, choice, and revealed preference

Author Info

Listed author(s):
  • Caplin, Andrew

    ()

    (Department of Economics, New York University)

  • Dean, Mark

    ()

    (Department of Economics, Brown University)

Abstract

With complete information, choice of one option over another conveys preference. Yet when search is incomplete, this is not necessarily the case. It may instead reflect unawareness that a superior alternative was available. To separate these phenomena, we consider non-standard data on the evolution of provisional choices with contemplation time. We characterize precisely when the resulting data could have been generated by a general form of sequential search. We characterize also search that terminates based on a reservation utility stopping rule. We outline an experimental design that captures provisional choices in the pre-decision period.

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File URL: http://econtheory.org/ojs/index.php/te/article/viewFile/20110019/4779/167
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Article provided by Econometric Society in its journal Theoretical Economics.

Volume (Year): 6 (2011)
Issue (Month): 1 (January)
Pages:

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Handle: RePEc:the:publsh:592
Contact details of provider: Web page: http://econtheory.org

Keywords: Revealed preference; search theory; stochastic choice;

Find related papers by JEL classification:

  • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
  • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

References listed on IDEAS
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