Deliberately Stochastic

S-Tier
Journal: American Economic Review
Year: 2019
Volume: 109
Issue: 7
Pages: 2425-45

Authors (4)

Simone Cerreia-Vioglio (not in RePEc) David Dillenberger (not in RePEc) Pietro Ortoleva (not in RePEc) Gil Riella (Fundação Getúlio Vargas (FGV))

Score contribution per author:

2.011 = (α=2.01 / 4 authors) × 4.0x S-tier

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

Abstract

We study stochastic choice as the outcome of deliberate randomization. We derive a general representation of a stochastic choice function where stochasticity allows the agent to achieve from any set the maximal element according to her underlying preferences over lotteries. We show that in this model stochasticity in choice captures complementarity between elements in the set, and thus necessarily implies violations of Regularity/Monotonicity, one of the most common properties of stochastic choice. This feature separates our approach from other models, e.g., Random Utility.

Technical Details

RePEc Handle
repec:aea:aecrev:v:109:y:2019:i:7:p:2425-45
Journal Field
General
Author Count
4
Added to Database
2026-01-25