Bounded rationality and limited datasets

Geoffroy de Clippel and Kareen Rozen ()
Additional contact information
Kareen Rozen: Department of Economics, Brown University

Theoretical Economics, 2021, vol. 16, issue 2

Abstract: Bounded rationality theories are typically characterized over exhaustive data sets. We develop a methodology to understand the empirical content of such theories with limited data, adapting the classic, revealed-preference approach to new forms of revealed information. We apply our approach to an array of theories, illustrating its versatility. We identify theories and datasets testable in the same elegant way as Rationality, and theories and datasets where testing is more challenging. We show that previous attempts to test consistency of limited data with bounded rationality theories are subject to a conceptual pitfall that may lead to false conclusions that the data is consistent with the theory.

Keywords: Bounded rationality; revealed preference; limited data (search for similar items in EconPapers)
JEL-codes: D9 (search for similar items in EconPapers)
Date: 2021-05-03
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://econtheory.org/ojs/index.php/te/article/viewFile/20210359/30625/862 (application/pdf)

Related works:
Working Paper: Bounded Rationality and Limited Datasets (2020)
Working Paper: Bounded Rationality and Limited Datasets (2014)
Working Paper: Bounded Rationality and Limited Datasets (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:the:publsh:4070

Access Statistics for this article

Theoretical Economics is currently edited by Simon Board, Todd D. Sarver, Juuso Toikka, Rakesh Vohra, Pierre-Olivier Weill

More articles in Theoretical Economics from Econometric Society
Bibliographic data for series maintained by Martin J. Osborne ().