Stochastic Choice and Attention Capacities: Inferring Preferences from Psychological Biases

摘要: This paper shows that frequently observed violations of IIA (Independence Irrelevant Alternatives), namely the similarity and attraction effect can be compatible with maximization rational preferences themselves used to infer underlying preference relation. In order do this, I introduce a new choice rule is based on evidence decision makers not pay attention all items in menu. Nevertheless they have an preference. The Fuzzy Attention Model (FAM) characterized by axiom revealed stochastic akin Strong Axiom Revealed Preference (SARP). model explains both effects introducing idea capacity allows for complementarity substitutability attention. related while has complementarity. FAM nests literature random consideration sets proposed Manzini Mariotti (2014) standard model, but nested utility framework.