TY  - GEN
AB  - 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)).
DA  - 2014
KW  - Belief formation
KW  - prior
KW  - case-based reasoning
KW  - relative frequencies
KW  - similarity
KW  - limited attention
KW  - consideration set
KW  - heuristics
KW  - satisficing
KW  - multicriteria choice
KW  - rationalization
LA  - eng
PY  - 2014
SN  - 0931-6558
SP  - 37-
TI  - Limited Attention in Case-Based Belief Formation
UR  - https://nbn-resolving.org/urn:nbn:de:0070-pub-29016397
Y2  - 2024-11-22T03:59:16
ER  -