Random Utility and Limited Consideration

Reference Dependence and Random Attention

“…Recently, Cattaneo et al [2020] study a general random attention model which also features an unstructured attention process. A few recent papers study the case where both preferences and consideration sets are stochastic (see Abaluck and Adams [2017], Barseghyan et al [2019], Dardanoni et al [2020], Aguiar et al [2021], Gibbard [2021]). Other stochastic choice papers which feature limited or imperfect attention include Kovach and Ülkü [2020], which considers a satisficer with a random threshold, and Kovach and Tserenjigmid [forthcoming], which studies menu-dependent focality with taste shocks.…”

Random Rank-Dependent Expected Utility

“…Sampling variability arises from the fact that ρ can be only consistently estimated by the realized choice frequencies ρ. This section follows closely Aguiar et al (2021). First we need some additional notation.…”

“…To illustrate the proposed methodology we use a subsample of the dataset from Aguiar et al (2021) to test for consistency of the behavior of a population of DMs with RRDEU and REU. Crucially, we use only one treatment (frame) of Aguiar et al (2021) corresponding to a situation where the cost of experimental subjects to pay attention is designed to be low. In that sense, we can avoid thinking about limited attention/consideration in this paper.…”

“…In that sense, we can avoid thinking about limited attention/consideration in this paper. Aguiar et al (2021) conducted the experiment in Amazon MTurk for a large cross-section with at most two (disjoint) choice sets per individual. In the experiment, the set of prizes is X = {0, 10, 12, 20, 30, 48, 50}.…”

“…Similarly, the second lottery can be written as l 2 = (0, 0, 1/2, 0, 0, 1/2, 0) ′ . For more details on the experiment see Aguiar et al (2021).…”