Limited Attention in Case-Based Belief Formation
Bleile J (2014) Center for Mathematical Economics Working Papers; 518.
Bielefeld: Center for Mathematical Economics.
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| Veröffentlicht | Englisch
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Abstract / Bemerkung
An agent wants to derive her belief over outcomes based on past observations collected in her
database (memory). There is well establish evidence in the psychology and marketing literature
that agents consistently fail (or choose not) to process all available information. An agent might
be constraint to pay attention (recall) and consider only parts of her potentially available information
due to unawareness, cognitive or psychological limitations or intentionally for effort-efficiency.
Based on this insight, we axiomatize a two-stage belief formation process in which in a first step
agents filter ((un)intentionally) the available information. In a second step individuals employ the
remaining observations to express a belief. We impose cognitively and normatively desirable properties
on the filtering process. The axioms on the belief formation stage describe the relationship
between databases and their induced beliefs. The axiomatized belief induced by a filtered databases
is representable by a similarity weighted average of the estimations induced by each past attentiongrabbing
observation. An appealing application is a satisficing filter that induces a filtered belief
that relies only on past experiences that are sufficiently relevant for a current problem. For the
specific situation that agents (are able to) always pay attention to all available information, our
axiomatization coincides with the axiomatization of a belief formation in Billot et al. (Econometrica
(2005)).
Stichworte
Belief formation;
prior;
case-based reasoning;
relative frequencies;
similarity;
limited attention;
consideration set;
heuristics;
satisficing;
multicriteria choice;
rationalization
Erscheinungsjahr
2014
Serientitel
Center for Mathematical Economics Working Papers
Band
518
Seite(n)
37
ISSN
0931-6558
Page URI
https://pub.uni-bielefeld.de/record/2901639
Zitieren
Bleile J. Limited Attention in Case-Based Belief Formation. Center for Mathematical Economics Working Papers. Vol 518. Bielefeld: Center for Mathematical Economics; 2014.
Bleile, J. (2014). Limited Attention in Case-Based Belief Formation (Center for Mathematical Economics Working Papers, 518). Bielefeld: Center for Mathematical Economics.
Bleile, Jörg. 2014. Limited Attention in Case-Based Belief Formation. Vol. 518. Center for Mathematical Economics Working Papers. Bielefeld: Center for Mathematical Economics.
Bleile, J. (2014). Limited Attention in Case-Based Belief Formation. Center for Mathematical Economics Working Papers, 518, Bielefeld: Center for Mathematical Economics.
Bleile, J., 2014. Limited Attention in Case-Based Belief Formation, Center for Mathematical Economics Working Papers, no.518, Bielefeld: Center for Mathematical Economics.
J. Bleile, Limited Attention in Case-Based Belief Formation, Center for Mathematical Economics Working Papers, vol. 518, Bielefeld: Center for Mathematical Economics, 2014.
Bleile, J.: Limited Attention in Case-Based Belief Formation. Center for Mathematical Economics Working Papers, 518. Center for Mathematical Economics, Bielefeld (2014).
Bleile, Jörg. Limited Attention in Case-Based Belief Formation. Bielefeld: Center for Mathematical Economics, 2014. Center for Mathematical Economics Working Papers. 518.
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