American Economic Review: Vol. 102 No. 5 (August 2012)


Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter


AER - All Issues

AER Forthcoming Articles

Revealed Attention

Article Citation

Masatlioglu, Yusufcan, Daisuke Nakajima, and Erkut Y. Ozbay. 2012. "Revealed Attention." American Economic Review, 102(5): 2183-2205.

DOI: 10.1257/aer.102.5.2183


The standard revealed preference argument relies on an implicit assumption that a decision maker considers all feasible alternatives. The marketing and psychology literatures, however, provide well-established evidence that consumers do not consider all brands in a given market before making a purchase (Limited Attention). In this paper, we illustrate how one can deduce both the decision maker's preference and the alternatives to which she pays attention and inattention from the observed behavior. We illustrate how seemingly compelling welfare judgments without specifying the underlying choice procedure are misleading. Further, we provide a choice theoretical foundation for maximizing a single preference relation under limited attention. (JEL D11, D81)

Article Full-Text Access

Full-text Article


Masatlioglu, Yusufcan (U MI)
Nakajima, Daisuke (U MI)
Ozbay, Erkut Y. (U MD)

JEL Classifications

D11: Consumer Economics: Theory
D81: Criteria for Decision-Making under Risk and Uncertainty

American Economic Review

Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)


AER - All Issues

AER - Forthcoming Articles

Virtual Field Journals

AEA Member Login:

AEAweb | AEA Journals | Contact Us