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Stochastic Choice and Consideration Sets

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Listed:
  • Paola Manzini
  • Marco Mariotti

Abstract

We model a boundedly rational agent who suffers from limited attention. The agent considers each feasible alternative with a given (unobservable) probability, the attention parameter, and then chooses the alternative that maximizes a preference relation within the set of considered alternatives. We show that this random choice rule is the only one for which the impact of removing an alternative on the choice probability of any other alternative is asymmetric and menu independent. Both the preference relation and the attention parameters are identified uniquely by stochastic choice data.

Suggested Citation

  • Paola Manzini & Marco Mariotti, 2014. "Stochastic Choice and Consideration Sets," Econometrica, Econometric Society, vol. 82(3), pages 1153-1176, May.
    • Handle: RePEc:wly:emetrp:v:82:y:2014:i:3:p:1153-1176
    DOI: 10.3982/ECTA10575
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    References listed on IDEAS

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