Stochastic Choice and Consideration Sets

We model a boundedly rational agent who su¤ers from limited attention. The agent considers each feasible alternative with a given (unobservable) probability, the attention parameter, and then chooses the alternative that maximises a prefer-ence relation within the set of considered alternatives. We show that this random choice rule is the only one for which the impact of removing an alternative on the choice probability of any other alternative is asymmetric and menu independent. Both the preference relation and the attention parameters are identi\u85ed uniquely by stochastic choice data. J.E.L. codes: D0