Speaker: Matthew Ryan (AUT)
Paper to be presented: “Rationalising Random Choice as Random Consideration”
Date, Time and Venue: Monday, 13 May 2019, 14:00-15:00, 260-6115 [Business School Building, Level 6]
Abstract: Attempts to rationalise experimental evidence of pervasive randomness in choice behaviour may be divided into four categories: (i) models of deliberate randomisation; (ii) models of noisy utility maximisation (bounded rationality); (iii) random preferences models; and (iv) random consideration models. Category (i) has largely been explored by economists; (ii) and (iii) are mainly associated with mathematical psychologists and (iv) with researchers in marketing science. Recently, economists have taken an increasing interest in (iv), following the pioneering work of Manzini and Mariotti (Econometrica, 2014). This talk will briefly introduce random consideration models and their relationships with random preference models. A new random consideration model will also be proposed and “axiomatised”. This new model allows preferences to be ill-behaved on subsets of alternatives that are never considered together. In other words, the model is predicated on the implicit (and hopefully plausible) assumption that consideration is necessary to discipline preference.