Open AccessChoice by iterative search
Author(s) -
Masatlioglu Yusufcan,
Nakajima Daisuke
Publication year - 2013
Publication title -
theoretical economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 4.404
H-Index - 32
eISSN - 1555-7561
pISSN - 1933-6837
DOI - 10.3982/te1014
Subject(s) - computer science , set (abstract data type) , process (computing) , iterative and incremental development , linear search , choice set , economics , econometrics , algorithm , software engineering , programming language , operating system
When making choices, decision makers often either lack information about alternatives or lack the cognitive capacity to analyze every alternative. To capture these situations, we formulate a framework to study behavioral search by utilizing the idea of consideration sets. Consumers engage in a dynamic search process. At each stage, they consider only those options in the current consideration set. We provide behavioral postulates that characterize this model. We illustrate how one can identify both search paths and preferences.