A Simple Experienced Choice Model: A Revealed Preference Approach

ABSTRACT In this paper, we present a framework to study different possible choice models with an underlying characteristic in common: the decision maker can make mistakes due to cognitive limitations but such mistakes disappear once options are experienced. We present both a possible class of models and its axiomatic characterization. We also use a machinery developed to contribute to welfare analysis by using observable choices to identify a welfare‐relevant preference relation.