When more is less: Limited consideration

• 成果类型: Article
• 署名作者: Lleras, Juan Sebastian; Masatlioglu, Yusufcan; Nakajima, Daisuke; Ozbay, Erkut Y.
• 署名单位: University System of Maryland; University of Maryland College Park; Otaru University of Commerce
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2017.04.004
• 发表日期: 2017
• 页码: 70-85
• 关键词: Revealed preferences; attention; consideration set; Preference reversal

摘要

There is well-established evidence that decision makers consistently fail to consider all available options. Instead, they restrict attention to only a subset of alternatives and then undertake a more detailed analysis of this reduced set. This systematic lack of consideration of available options can lead to a more is less effect, where excess of options can be welfare-reducing for a decision-maker (DM). Building on this idea, we model individuals who might pay attention to only a subset of the choice problem presented to them. Within this smaller set, a DM is rational in the standard sense, and she chooses the maximal element with respect to her preference. We provide a choice theoretical foundation for our model. In addition, we show which alternatives are revealed preferred to which and discuss welfare implications. (C) 2017 Elsevier Inc. All rights reserved.