Dear All, 

Please find below the invitation to the IN PERSON CEU Economic Seminar Series (CESS) presentation. 

Colin Stewart will talk about: ‘Boundedly Rational Demand’ (with Pavel Kocourek and Jakub Steiner)

Time and venue: November 7, Tuesday, 11.15am – 12.30pm, at Quellenstrasse 51 (Vienna), QS B-505.

Abstract:

Abstract Evidence suggests that consumers do not perfectly optimize, contrary to a critical assumption of classical consumer theory. We propose a model in which consumer types can vary in both their preferences and their choice behavior. Given data on demand and the distribution of prices, we identify the set of possible values of the consumer surplus based on minimal rationality conditions: every type of consumer must be no worse off than if they either always bought the good or never did. We develop a procedure to narrow the set of surplus values using richer datasets and provide bounds on counterfactual demands.

Please sign up for the seminar at this link till 12pm, the day before the seminar!

Best Regards:

Mats