Random Choice as Behavioral Optimization

S-Tier
Journal: Econometrica
Year: 2014
Volume: 82
Issue: 5
Pages: 1873-1912

Authors (3)

Faruk Gul (not in RePEc) Paulo Natenzon (Washington University in St. L...) Wolfgang Pesendorfer (not in RePEc)

Score contribution per author:

2.681 = (α=2.01 / 3 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We develop an extension of Luce's random choice model to study violations of the weak axiom of revealed preference. We introduce the notion of a stochastic preference and show that it implies the Luce model. Then, to address well‐known difficulties of the Luce model, we define the attribute rule and establish that the existence of a well‐defined stochastic preference over attributes characterizes it. We prove that the set of attribute rules and random utility maximizers are essentially the same. Finally, we show that both the Luce and attribute rules have a unique consistent extension to dynamic problems.

Technical Details

RePEc Handle
repec:wly:emetrp:v:82:y:2014:i:5:p:1873-1912
Journal Field
General
Author Count
3
Added to Database
2026-01-26