Stochastic Choice and Revealed Perturbed Utility

DSpace/Manakin Repository

Stochastic Choice and Revealed Perturbed Utility

Citable link to this page

 

 
Title: Stochastic Choice and Revealed Perturbed Utility
Author: Fudenberg, Drew; Iijima, Ryota; Strzalecki, Tomasz

Note: Order does not necessarily reflect citation order of authors.

Citation: Fudenberg, Drew, Ryota Iijima, and Tomasz Strzalecki. 2015. Stochastic Choice and Revealed Perturbed Utility. Econometrica 83, no. 6: 2371–2409. doi:10.3982/ecta12660.
Full Text & Related Files:
Abstract: Perturbed utility functions—the sum of expected utility and a nonlinear perturbation function—provide a simple and tractable way to model various sorts of stochastic choice. We provide two easily understood conditions each of which characterizes this representation: One condition generalizes the acyclicity condition used in revealed preference theory, and the other generalizes Luce’s IIA condition. We relate the discrimination or selectivity of choice rules to properties of their associated perturbations, both across different agents and across decision problems. We also show that these representations correspond to a form of ambiguity-averse preferences for an agent who is uncertain about her true utility.
Published Version: doi:10.3982/ecta12660
Terms of Use: This article is made available under the terms and conditions applicable to Other Posted Material, as set forth at http://nrs.harvard.edu/urn-3:HUL.InstRepos:dash.current.terms-of-use#LAA
Citable link to this page: http://nrs.harvard.edu/urn-3:HUL.InstRepos:33776230
Downloads of this work:

Show full Dublin Core record

This item appears in the following Collection(s)

 
 

Search DASH


Advanced Search
 
 

Submitters