Revealed Preference with Limited Consideration

• 成果类型: Article
• 署名作者: Demuynck, Thomas; Seel, Christian
• 署名单位: Universite Libre de Bruxelles; Maastricht University
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MICROECONOMICS
• ISSN/ISSBN: 1945-7669
• DOI: 10.1257/mic.20150343
• 发表日期: 2018
• 页码: 102-131
• 关键词: reference price research; Goodness-of-fit; consideration sets; Collective model; afriats theorem; empirical tests; consumption; CHOICE; BEHAVIOR; search

摘要

We derive revealed preference tests for models where individuals use consideration sets to simplify their consumption problem. Our basic test provides necessary and sufficient conditions for consistency of observed choices with the existence of consideration set restrictions. The same conditions can also be derived from a model in which the consideration set formation is endogenous and based on subjective prices. By imposing restrictions on these subjective prices, we obtain additional refined revealed preference tests. We illustrate and compare the performance of our tests by means of a dataset on household consumption choices.