Choice and Attention across Time (2203.03243v3)

Abstract: I study how past and future choices are linked in the framework of attention. Attention cannot be observed but past choices are necessarily considered in future decisions. This link connects two types of rationality violations, counterfactual and realized, where the former results from inattention and the latter fully pins down preferences. Results show that the necessary traces of limited attention lie within choice sequences because they enable and compel a decision maker to correct their "mistakes". The framework accommodates different attention structures and extends to framing, introducing choice sequences as an important channel to formulate, identify, and scrutinize limited attention.