Consumer Choice and Revealed Bounded Rationality

17 Pages Posted: 12 Aug 2006

See all articles by Paola Manzini

Paola Manzini

Institute for the Study of Labor (IZA); University of St. Andrews - School of Economics and Finance

Marco Mariotti

University of London - School of Economics and Finance

Date Written: August 2006

Abstract

We study two boundedly rational procedures in consumer behavior. We show that these procedures can be detected by conditions on observable demand data of the same type as standard revealed preference axioms. This provides the basis for a non-parametric analysis of boundedly rational consumer behavior mirroring the classical one for utility maximization.

Keywords: bounded rationality, revealed preference, consumer choice

JEL Classification: D1, D11

Suggested Citation

Manzini, Paola and Manzini, Paola and Mariotti, Marco, Consumer Choice and Revealed Bounded Rationality (August 2006). Available at SSRN: https://ssrn.com/abstract=923785 or http://dx.doi.org/10.2139/ssrn.923785

Paola Manzini (Contact Author)

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

University of St. Andrews - School of Economics and Finance ( email )

North St
Saint Andrews, Fife KY16 9AJ
United Kingdom

HOME PAGE: http://www.st-andrews.ac.uk/~pm210/

Marco Mariotti

University of London - School of Economics and Finance ( email )

Mile End Road
London, E1 4NS
United Kingdom