Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/62653 
Year of Publication: 
2012
Series/Report no.: 
Working Paper No. 2012-7
Publisher: 
Brown University, Department of Economics, Providence, RI
Abstract: 
Theories of bounded rationality are typically characterized over an exhaustive data set. This paper aims to operationalize some leading theories when the available data is limited, as is the case in most practical settings. How does one tell if observed choices are consistent with a theory of bounded rationality if the data is incomplete? What information can be identified about preferences? How can out-of-sample predictions be made? Our approach is contrasted with earlier attempts to examine bounded rationality theories on limited data, showing their notion of consistency is inappropriate for identifiability and out-of-sample prediction.
Document Type: 
Working Paper

Files in This Item:
File
Size
459.74 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.