Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/34150 
Year of Publication: 
2006
Series/Report no.: 
IZA Discussion Papers No. 2341
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
We study and test a class of boundedly rational models of decision making which rely on sequential eliminative heuristics. We formalize two sequential decision procedures, both inspired by plausible models popular among several psychologists and marketing scientists. However we follow a standard 'revealed preference' economic approach by fully characterizing these procedures by few, simple and testable conditions on observed choice. Then we test the models (as well as the standard utility maximization model) with experimental data. We find that the large majority of individuals behave in a way consistent with one of our procedures, and inconsistent with the utility maximization model.
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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