Random Attention and Unobserved Reference Alternatives

In this paper I develop and characterize a random attention model with unobserved reference alternatives. The decision maker pays attention to different subsets of the available set of alternatives randomly. The reference alternatives are exactly those alternatives that are always paid attention to, i.e. they are attention-privileged and these alternatives are supposed to be unknown to the outside observer. The characterization allows for a complete identification of the reference alternatives and a coarse identification of the underlying preferences. I then restrict the model by considering the independent random attention function and provide a complete identification of the underlying preferences as well.