Authors
Matias D Cattaneo, Xinwei Ma, Yusufcan Masatlioglu, Elchin Suleymanov
Publication date
2020/7
Journal
Journal of Political Economy
Volume
128
Issue
7
Pages
2796-2836
Description
This paper illustrates how one can deduce preference from observed choices when attention is both limited and random. We introduce a random attention model where we abstain from any particular attention formation and instead consider a large class of nonparametric random attention rules. Our intuitive condition, monotonic attention, captures the idea that each consideration set competes for the decision maker’s attention. We then develop a revealed preference theory and obtain testable implications. We propose econometric methods for identification, estimation, and inference for the revealed preferences. Finally, we provide a general-purpose software implementation of our estimation and inference results and simulation evidence.
Total citations
201920202021202220232024161624183319
Scholar articles
MD Cattaneo, X Ma, Y Masatlioglu, E Suleymanov - Journal of Political Economy, 2020
MD Cattaneo, X Ma, Y Masatlioglu, E Suleymanov - 2019