Inferring Cognitive Heterogeneity from Aggregate Choices | Dipartimento di Scienze Economiche

Inferring Cognitive Heterogeneity from Aggregate Choices

13 dicembre 2018 12:30 - 13:30
Luogo: 
Aula 21, Via dei Caniana
Relatore/i: 
Valentino Dardanoni
Persona di riferimento: 
prof.ssa Maria Rosa Battaggion, maria-rosa.battaggion@unibg.it

One potentially important drawback of existing theories of limited attention is that they typically assume a rich dataset of choices from many menus. We study the problem of identifying the distribution of cognitive characteristics in a population of agents when only aggregate choice behavior from a single menu is observable. We show how both “consideration probability” and “consideration capacity” distributions can be substantially identified by aggregate choice shares. We also suggest how to embed the attention models in an econometric specification of the inference problem. Finally, we successfully use our results to recover the true parameters in Monte Carlo simulations of both models.