Paola Manzini , University of St. Andrews and IZA Marco Mariotti , Queen Mary University of London Christopher J. Tyson , Queen Mary University of London
March 30, 2016
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In the context of the two-stage threshold model of decision making, with the agent's choices determined by the interaction of three "structural variables," we study the restrictions on behaviour that arise when one or more variables are exogenously known. Our results supply necessary and sufficient conditions for consistency with the model for all possible states of partial knowledge, and for both single- and multi-valued choice functions.
J.E.L classification codes: D010, D030
Keywords:Attention, Revealed preference, Salience, Satisficing