Recognition Program

Authors: Elena Reutskaja, Rosemarie Nagel, Colin F. Camerer and Antonio Rangel

American Economic Review, January, 2011

We study decisions that involve choosing between different numbers of options under time pressure using eye-tracking to monitor the search process of the subjects. We find that subjects are quite adept at optimizing within the set of items that they see, that the initial search process is random in value, that subjects use a stopping rule to terminate the search process that combines features of optimal search and satisficing, and that subjects search more often in certain focal regions of the display, which leads to choice biases. (JEL C91, D12, M31)

This paper is acknowledged by the Barcelona GSE Research Recognition Program