Combinatorial choice and limited attention

Combinatorial choice models are based on the implicit assumption that decision-makers consider all possible combinations that can be made by the options in a given set. Therefore, these models assumed that the chosen combination is the most preferable combination. However, decision-makers may not consider all possible combinations due to the limited attention. Thus, the chosen combination is not necessarily the best. This paper presents a model that can explain such choice behaviors. After presenting the model, we investigate its revealed preference implications and explain how one can make inferences about individuals’ preferences considering their choices in the new context. Finally, for the model to be testable, we present its characterizing axiom and show that it is equivalent to the model.