Theories of bounded rationality often assume a rich dataset of choices from many overlapping menus, limiting their practical applicability. In contrast, we study the problem of identifying the distribution of cognitive characteristics in a population of agents from a minimal dataset that consists of aggregate choice shares from a single menu, and includes no observable covariates of any kind. With homogeneous preferences, we find that “consideration capacity” and “consideration probability” distributions can both be recovered effectively if the menu is sufficiently large. This remains true generically when tastes are heterogeneous with a known distribution. When the taste distribution is unknown, we show that joint choice share data from three “occasions” are generically sufficient for full identification of the cognitive distribution, and also provide substantial information about tastes.

Dardanoni V., Manzini P., Mariotti M., & Tyson C.J. (2020). Inferring Cognitive Heterogeneity From Aggregate Choices. ECONOMETRICA, 88(3), 1269-1296 [10.3982/ECTA16382].

Inferring Cognitive Heterogeneity From Aggregate Choices

Dardanoni V.;
2020

Abstract

Theories of bounded rationality often assume a rich dataset of choices from many overlapping menus, limiting their practical applicability. In contrast, we study the problem of identifying the distribution of cognitive characteristics in a population of agents from a minimal dataset that consists of aggregate choice shares from a single menu, and includes no observable covariates of any kind. With homogeneous preferences, we find that “consideration capacity” and “consideration probability” distributions can both be recovered effectively if the menu is sufficiently large. This remains true generically when tastes are heterogeneous with a known distribution. When the taste distribution is unknown, we show that joint choice share data from three “occasions” are generically sufficient for full identification of the cognitive distribution, and also provide substantial information about tastes.
Dardanoni V., Manzini P., Mariotti M., & Tyson C.J. (2020). Inferring Cognitive Heterogeneity From Aggregate Choices. ECONOMETRICA, 88(3), 1269-1296 [10.3982/ECTA16382].
File in questo prodotto:
File Dimensione Formato  
ECTA16382.pdf

Solo gestori archvio

Descrizione: Articolo principale
Tipologia: Versione Editoriale
Dimensione 339.42 kB
Formato Adobe PDF
339.42 kB Adobe PDF   Visualizza/Apri   Richiedi una copia

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/10447/434867
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 12
  • ???jsp.display-item.citation.isi??? 10
social impact