Risk, Uncertainty and Discrete Choice Models

André de Palma (), Moshe Ben-Akiva, David Brownstone, Charles A. Holt (), Thierry Magnac (), Daniel L. McFadden, Peter Moffatt, Nathalie Picard (), Kenneth Train (), Peter P. Wakker and Joan Walker
Additional contact information
Moshe Ben-Akiva: Massachusetts Institute of Technology
David Brownstone: University of California at Irvine
Peter Moffatt: University of East Anglia
Joan Walker: Boston University

No 2008-02, THEMA Working Papers from THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise

Abstract: This paper examines the cross-fertilizations of random utility models with the study of decision making under risk and uncertainty. We start with a description of the Expected Utility (EU) theory and then consider deviations from the standard EU frameworks, involving the Allais paradox and the Ellsberg paradox, inter alia. We then discuss how the resulting Non-EU framework can be modeled and estimated within the framework of discrete choices in static and dynamic contexts. Our objectives in addressing risk and ambiguity in individual choice contexts are to understand the decision choice process, and to use behavioral information for prediction, prescription and policy analysis.

Keywords: discrete choice; decision making; risk; uncertainty; (cumulative) prospect theory; ambiguity (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-cbe, nep-dcm and nep-upt
Date: 2008
View list of references View citations in EconPapers

Downloads: (external link)
http://www.u-cergy.fr/thema/repec/2008-02.pdf (application/pdf)

Related works:
Journal Article: Risk, uncertainty and discrete choice models (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:ema:worpap:2008-02

Access Statistics for this paper

More papers in THEMA Working Papers from THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise
Contact information at EDIRC.
Series data maintained by Lise Patureau ().