Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Completing Incomplete Revealed Preference under Limited Attention

Completing Incomplete Revealed Preference under Limited Attention Abstract This paper discusses how to improve the identification of the preference of a decisionmaker (DM) with limited attention proposed by Masatlioglu, Nakajima and Ozbay (2012). in “Revealed Attention”. Their identification method relies on choice reversals so the obtained revealed preference is often incomplete. We propose three approaches to address this problem. The first one is accommodating a model-free approach, which respects the DM’s choice in making a welfare analysis, as long as it does not contradict the revealed preference of Masatlioglu et al. The second approach incorporates the DM’s exogenously obtained attention/inattention information into the model of Masatlioglu et al. The third approach is to take framings that influence the DM’s attention into effect for the identification. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The Japanese Economic Review Springer Journals

Completing Incomplete Revealed Preference under Limited Attention

Download PDF
15 pages

Loading next page...
 
/lp/springer-journals/completing-incomplete-revealed-preference-under-limited-attention-05uZkcRRRi

References (25)

Publisher
Springer Journals
Copyright
2015 Japanese Economic Association
ISSN
1352-4739
eISSN
1468-5876
DOI
10.1111/jere.12066
Publisher site
See Article on Publisher Site

Abstract

Abstract This paper discusses how to improve the identification of the preference of a decisionmaker (DM) with limited attention proposed by Masatlioglu, Nakajima and Ozbay (2012). in “Revealed Attention”. Their identification method relies on choice reversals so the obtained revealed preference is often incomplete. We propose three approaches to address this problem. The first one is accommodating a model-free approach, which respects the DM’s choice in making a welfare analysis, as long as it does not contradict the revealed preference of Masatlioglu et al. The second approach incorporates the DM’s exogenously obtained attention/inattention information into the model of Masatlioglu et al. The third approach is to take framings that influence the DM’s attention into effect for the identification.

Journal

The Japanese Economic Review – Springer Journals

Published: Sep 1, 2015

Keywords: economics, general; microeconomics; macroeconomics/monetary economics//financial economics; econometrics; development economics; economic history

There are no references for this article.