Dual Random Utility Maximisation
Paola Manzini () and
No 201605, Discussion Paper Series, Department of Economics from Department of Economics, University of St. Andrews
Dual Random Utility Maximisation (dRUM) is Random Utility Maximisation when utility depends on only two states. dRUM has many relevant behavioural interpretations and practical applications. We show that it is (generically) the only stochastic choice rule that satisfies Regularity and two new simple properties: Constant Expansion (if the choice probability of an alternative is the same across two menus, then it is the same in the combined menu), and Negative Expansion (if the choice probability of an alternative is less than one and differs across two menus, then it vanishes in the combined menu). By extending the theory to menu-dependent state probabilities we are able to accommodate prominent violations of Regularity such as the attraction, similarity and compromise effects.
Keywords: Stochastic Choice; Attraction Effect; Similarity Effect (search for similar items in EconPapers)
JEL-codes: D03 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mic and nep-upt
Date: 2016-03-23, Revised 2017-03-12
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:san:wpecon:1605
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in Discussion Paper Series, Department of Economics from Department of Economics, University of St. Andrews School of Economics and Finance, University of St. Andrews, Fife KY16 9AL. Contact information at EDIRC.
Series data maintained by the School of Economics ().