This paper illustrates how one can deduce preference from observed choices when attention is both limited and random. We introduce a random attention model where we abstain from any particular attention formation and instead consider a large class of nonparametric random attention rules. Our intuitive condition, monotonic attention, captures the idea that each consideration set competes for the decision maker’s attention. We then develop a revealed preference theory and obtain testable implications.
A Random Attention ModelY. Masatlioglu, M. Cattaneo, X. Ma, and E. Suleymanov ,
7( 128 )
Journal of Political Economy