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A Random Attention Model

Author

Listed:
  • Matias D. Cattaneo
  • Xinwei Ma
  • Yusufcan Masatlioglu
  • Elchin Suleymanov

Abstract

We introduce a Random Attention Model (RAM) allowing for a large class of stochastic consideration maps in the context of an otherwise canonical limited attention model for decision theory. The model relies on a new restriction on the unobserved, possibly stochastic consideration map, termed \textit{Monotonic Attention}, which is intuitive and nests many recent contributions in the literature on limited attention. We develop revealed preference theory within RAM and obtain precise testable implications for observable choice probabilities. Using these results, we show that a set (possibly a singleton) of strict preference orderings compatible with RAM is identifiable from the decision maker's choice probabilities, and establish a representation of this identified set of unobserved preferences as a collection of inequality constrains on her choice probabilities. Given this nonparametric identification result, we develop uniformly valid inference methods for the (partially) identifiable preferences. We showcase the performance of our proposed econometric methods using simulations, and provide general-purpose software implementation of our estimation and inference results in the \texttt{R} software package \texttt{ramchoice}. Our proposed econometric methods are computationally very fast to implement.

Suggested Citation

  • Matias D. Cattaneo & Xinwei Ma & Yusufcan Masatlioglu & Elchin Suleymanov, 2017. "A Random Attention Model," Papers 1712.03448, arXiv.org, revised Apr 2018.
  • Handle: RePEc:arx:papers:1712.03448
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    References listed on IDEAS

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