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Imperfect Attention and Menu Evaluation

Author

Listed:
  • Paola Manzini

    () (University of St Andrews and IZA)

  • Marco Mariotti

    () (University of St Andrews)

Abstract

We propose a novel method to model an agent who is imperfectly attentive in the sense that she may consider only some of the alternatives available. Our methodology departs from the standard ‘revealed preference’ one: we make plau- sible assumptions on the values to the imperfectly attentive agent of different choice situations. We derive in this way a simple reduced-form model that is compatible with several cognitive processes underlying choice: the agent stochastically forms a consideration set by noticing each alternative with a given probability and then maximises a deterministic utility function over the consideration set.

Suggested Citation

  • Paola Manzini & Marco Mariotti, 2013. "Imperfect Attention and Menu Evaluation," Discussion Paper Series, Department of Economics 201319, Department of Economics, University of St. Andrews, revised 08 Apr 2015.
  • Handle: RePEc:san:wpecon:1319
    as

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    File URL: http://www.st-andrews.ac.uk/~wwwecon/repecfiles/4/1319.pdf
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    References listed on IDEAS

    as
    1. Clark, Stephen A., 1995. "Indecisive choice theory," Mathematical Social Sciences, Elsevier, vol. 30(2), pages 155-170, October.
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    13. Sims, Christopher A., 2003. "Implications of rational inattention," Journal of Monetary Economics, Elsevier, vol. 50(3), pages 665-690, April.
    14. Faruk Gul & Paulo Natenzon & Wolfgang Pesendorfer, 2014. "Random Choice as Behavioral Optimization," Econometrica, Econometric Society, vol. 82, pages 1873-1912, September.
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    More about this item

    Keywords

    attention; bounded rationality; stochastic choice;

    JEL classification:

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

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