American Economic Journal:
Microeconomics
ISSN 1945-7669 (Print) | ISSN 1945-7685 (Online)
Inferring Rationales from Choice: Identification for Rational Shortlist Methods
American Economic Journal: Microeconomics
vol. 7,
no. 4, November 2015
(pp. 179–201)
Abstract
A wide variety of choice behavior inconsistent with preference maximization can be explained by Manzini and Mariotti's Rational Shortlist Methods. Choices are made by sequentially applying a pair of asymmetric binary relations (rationales) to eliminate inferior alternatives. Manzini and Mariotti's axiomatic treatment elegantly describes which behavior can be explained by this model. However, it leaves unanswered what can be inferred, from observed behavior, about the underlying rationales. Establishing this connection is fundamental not only for applied and empirical work but also for meaningful welfare analysis. Our results tightly characterize the surprisingly rich relationship between behavior and the underlying rationales. (JEL D11, D12, D83, M37)Citation
Dutta, Rohan, and Sean Horan. 2015. "Inferring Rationales from Choice: Identification for Rational Shortlist Methods." American Economic Journal: Microeconomics, 7 (4): 179–201. DOI: 10.1257/mic.20130118Additional Materials
JEL Classification
- D11 Consumer Economics: Theory
- D12 Consumer Economics: Empirical Analysis
- D83 Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
- M37 Advertising
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