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Inferring Rationales from Choice : Identification for Rational Shortlist Methods

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  • Rohan Dutta
  • Sean Horan

Abstract

A wide variety of choice behavior inconsistent with preference maximization can be explained by Manzini and Mariotti's Rational Shortlist Methods. Choices are made by sequentially applying a pair of asymmetric binary relations (rationales) to eliminate inferior alternatives. Manzini and Mariotti's axiomatic treatment elegantly describes which behavior can be explained by this model. However, it leaves unanswered what can be inferred, from observed behavior, about the underlying rationales. Establishing this connection is fundamental not only for applied and empirical work but also for meaningful welfare analysis. Our results tightly characterize the surprisingly rich relationship between behavior and the underlying rationales.

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  • Rohan Dutta & Sean Horan, 2013. "Inferring Rationales from Choice : Identification for Rational Shortlist Methods," Cahiers de recherche 09-2013, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
    • Handle: RePEc:mtl:montec:09-2013
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    Cited by:

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    2. Kops, Christopher, 2022. "Cluster-shortlisted choice," Journal of Mathematical Economics, Elsevier, vol. 102(C).
    3. Geng, Sen, 2022. "Limited consideration model with a trigger or a capacity," Journal of Mathematical Economics, Elsevier, vol. 101(C).
    4. Freeman, David J., 2017. "Preferred personal equilibrium and simple choices," Journal of Economic Behavior & Organization, Elsevier, vol. 143(C), pages 165-172.
    5. Qin, Dan, 2021. "Exclusive shortlisting choice with reference," Economics Letters, Elsevier, vol. 198(C).
    6. Gent Bajraj & Levent Ülkü, 2015. "Choosing two finalists and the winner," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 45(4), pages 729-744, December.
    7. Horan, Sean & Sprumont, Yves, 2022. "Two-stage majoritarian choice," Theoretical Economics, Econometric Society, vol. 17(2), May.
    8. Lleras, Juan Sebastián & Masatlioglu, Yusufcan & Nakajima, Daisuke & Ozbay, Erkut Y., 2017. "When more is less: Limited consideration," Journal of Economic Theory, Elsevier, vol. 170(C), pages 70-85.
    9. Matsuki, Jun & Tadenuma, Koichi & 蓼沼, 宏一, 2013. "Choice via Grouping Procedures," CCES Discussion Paper Series 52, Center for Research on Contemporary Economic Systems, Graduate School of Economics, Hitotsubashi University.
    10. Dutta, Rohan, 2020. "Gradual pairwise comparison and stochastic choice," Theoretical Economics, Econometric Society, vol. 15(4), November.
    11. Geng, Sen & Özbay, Erkut Y., 2021. "Shortlisting procedure with a limited capacity," Journal of Mathematical Economics, Elsevier, vol. 94(C).
    12. Horan, Sean & Sprumont, Yves, 2016. "Welfare criteria from choice: An axiomatic analysis," Games and Economic Behavior, Elsevier, vol. 99(C), pages 56-70.
    13. Juan Lleras & Yusufcan Masatlioglu & Daisuke Nakajima & Erkut Ozbay, 2021. "Path-Independent Consideration," Games, MDPI, vol. 12(1), pages 1-10, March.
    14. Özgür Kıbrıs & Yusufcan Masatlioglu & Elchin Suleymanov, 2023. "A theory of reference point formation," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 75(1), pages 137-166, January.
    15. García-Sanz, María D. & Alcantud, José Carlos R., 2015. "Sequential rationalization of multivalued choice," Mathematical Social Sciences, Elsevier, vol. 74(C), pages 29-33.
    16. Cuhadaroglu, Tugce, 2017. "Choosing on influence," Theoretical Economics, Econometric Society, vol. 12(2), May.

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    More about this item

    Keywords

    Revealed Preference; Identification; Uniqueness; Two-stage Choice Procedures; Behavioral Industrial Organization; Comparative Advertising; Decoy Marketing; Welfare.;
    All these keywords.

    JEL classification:

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

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