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Growing Consideration

Author

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  • Yuta Inoue

    (Graduate School of Economics, Waseda University)

Abstract

This paper proposes a behavioral model which we refer to as a Growing Consideration model, and derive observable implications using a revealed preference approach. This model inherits the main idea of Limited Consideration models, and adds to it an assumption that an agent's consideration grows over time. An agent makes choices over multiple time periods, while she may not pay attention to all available alternatives at all times. In addition, we require that she pays attention to alternatives that she chose in the past, which property we refer to as Growing Consideration. Revealed preference tests, as well as conditions under which we can robustly infer agent's preference, consideration, and non-consideration are given for two types of Growing Consideration models.

Suggested Citation

  • Yuta Inoue, 2020. "Growing Consideration," Working Papers 2003, Waseda University, Faculty of Political Science and Economics.
    • Handle: RePEc:wap:wpaper:2003
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    References listed on IDEAS

    as
    1. Paola Manzini & Marco Mariotti, 2012. "Categorize Then Choose: Boundedly Rational Choice And Welfare," Journal of the European Economic Association, European Economic Association, vol. 10(5), pages 1141-1165, October.
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    3. João V Ferreira & Nicolas Gravel, 2017. "Choice with Time," Working Papers halshs-01577260, HAL.
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    5. 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.
    6. Au, Pak Hung & Kawai, Keiichi, 2011. "Sequentially rationalizable choice with transitive rationales," Games and Economic Behavior, Elsevier, vol. 73(2), pages 608-614.
    7. Andrikopoulos, Athanasios, 2009. "Szpilrajn-type theorems in economics," MPRA Paper 14345, University Library of Munich, Germany.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Choice; Behavior; Time; Revealed preference; Robust inference; Limited Consideration; Limited Attention; Overwhelming Choice; Growing Consideration;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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