Random utility models with ordered types and domains

Jose Apesteguia and Miguel A. Ballester

Journal of Economic Theory, 2023, vol. 211, issue C

Abstract: Random utility models in which heterogeneity of preferences is modeled by means of an ordered collection of utilities, or types, provide a powerful framework for understanding a variety of economic behaviors. This paper studies the micro-foundations of ordered random utility models with the objective of meeting empirical requirements. This is done by working with arbitrary collections of ordered menus of alternatives, and by making no parametric assumptions about the type distribution. The model is characterized by a simple monotonicity axiom. Goodness-of-fit measures are proposed, with proof provided of the strong consistency of extremum estimators defined upon them. A statistical test for the model is also provided.

Keywords: Random utility model; Ordered utilities; Arbitrary domains (search for similar items in EconPapers)
JEL-codes: C00 D00 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Random Utility Models with Ordered Types and Domains (2020)
Working Paper: Random utility models with ordered types and domains (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:211:y:2023:i:c:s0022053123000704

DOI: 10.1016/j.jet.2023.105674

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