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Behavioral Implications of Shortlisting Procedures

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Abstract

We consider two-stage "shortlisting procedures" in which the menu of alternatives is first pruned by some process or criterion and then a binary relation is maximized. Given a particular first-stage process, our main result supplies a necessary and sufficient condition for choice data to be consistent with a procedure in the designated class. This result applies to any class of procedures with a certain lattice structure, including the cases of "consideration filters," "satisficing with salience effects," and "rational shortlist methods." The theory avoids background assumptions made for mathematical convenience; in this and other respects following Richter's classical analysis of preference-maximizing choice in the absence of shortlisting.

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  • Christopher J. Tyson, 2012. "Behavioral Implications of Shortlisting Procedures," Working Papers 697, Queen Mary University of London, School of Economics and Finance.
  • Handle: RePEc:qmw:qmwecw:wp697
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    Cited by:

    1. Paola Manzini & Marco Mariotti, 2014. "Stochastic Choice and Consideration Sets," Econometrica, Econometric Society, vol. 82(3), pages 1153-1176, May.
    2. Horan, Sean, 2016. "A simple model of two-stage choice," Journal of Economic Theory, Elsevier, vol. 162(C), pages 372-406.
    3. García-Sanz, María D. & Alcantud, José Carlos R., 2015. "Sequential rationalization of multivalued choice," Mathematical Social Sciences, Elsevier, vol. 74(C), pages 29-33.
    4. Yuta Inoue & Koji Shirai, 2018. "Limited consideration and limited data: revealed preference tests and observable restrictions," Discussion Paper Series 176, School of Economics, Kwansei Gakuin University, revised Mar 2018.
    5. repec:eee:jeborg:v:143:y:2017:i:c:p:165-172 is not listed on IDEAS
    6. Geoffroy de Clippel & Kareen Rozen, 2012. "Bounded Rationality and Limited Datasets," NajEcon Working Paper Reviews 786969000000000487, www.najecon.org.
    7. repec:aea:aejmic:v:10:y:2018:i:1:p:102-31 is not listed on IDEAS
    8. repec:spr:joecth:v:65:y:2018:i:4:d:10.1007_s00199-017-1043-2 is not listed on IDEAS
    9. Rohan Dutta & Sean Horan, 2015. "Inferring Rationales from Choice: Identification for Rational Shortlist Methods," American Economic Journal: Microeconomics, American Economic Association, vol. 7(4), pages 179-201, November.
    10. Apesteguia, Jose & Ballester, Miguel A., 2013. "Choice by sequential procedures," Games and Economic Behavior, Elsevier, vol. 77(1), pages 90-99.
    11. Christopher Tyson, 2015. "Satisficing behavior with a secondary criterion," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 44(3), pages 639-661, March.
    12. Valentino Dardanoni & Paola Manzini & Marco Mariotti & Christopher J. Tyson, 2017. "Inferring Cognitive Heterogeneity from Aggregate Choices," Discussion Paper Series, Department of Economics 201701, Department of Economics, University of St. Andrews, revised 25 May 2017.
    13. Geoffroy de Clippel & Kareen Rozen, 2012. "Bounded Rationality and Limited Datasets: Testable Implications, Identifiability, and Out-of-Sample Prediction," Working Papers 2012-7, Brown University, Department of Economics.
    14. Thomas Demuynck & Christian Seel, 2018. "Revealed Preference with Limited Consideration," American Economic Journal: Microeconomics, American Economic Association, vol. 10(1), pages 102-131, February.
    15. Cuhadaroglu, Tugce, 2017. "Choosing on influence," Theoretical Economics, Econometric Society, vol. 12(2), May.
    16. Yuta Inoue & Koji Shirai, 2016. "Limited consideration and limited data," Discussion Paper Series 149, School of Economics, Kwansei Gakuin University, revised Oct 2016.

    More about this item

    Keywords

    Attention; Complete lattice; Consideration set; Revealed preference;

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles

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