Department of Economics, UCSD
Statistical Properties of Consideration Sets
- Author(s): Carson, Richard T.
- Louviere, Jordan J.
- et al.
Consideration sets have become a central concept in the study of consumer behavior. Frequently, consumers are asked to split choice alternatives into those that that they would consider and those that they would not. Information on alternatives not in the consideration set is then typically not used in subsequent analysis. This practice is shown to lead to biased estimates of preference parameters. The reason for this is shown to be a form of sample selection bias.