Regret, responsibility, and randomization: A theory of stochastic choice

Pedram Heydari

Journal of Economic Theory, 2024, vol. 217, issue C

Abstract: I provide a model of deliberate stochastic choice over acts (state-contingent payoffs). In this model, the decision maker finds randomization desirable since it reduces responsibility and regret after the state uncertainty resolves. I provide an axiomatic characterization of stochastic choices compatible with this model. I also discuss the comparative statics and some behavioral implications of the model and outline potential avenues for extending and generalizing the model.

Keywords: Stochastic choice; Random choice; Regret aversion; Responsibility aversion; Deliberate randomization (search for similar items in EconPapers)
JEL-codes: D01 D80 D81 D91 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0022053124000309
Full text for ScienceDirect subscribers only

Related works:
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: https://EconPapers.repec.org/RePEc:eee:jetheo:v:217:y:2024:i:c:s0022053124000309

DOI: 10.1016/j.jet.2024.105824

Access Statistics for this article

Journal of Economic Theory is currently edited by A. Lizzeri and K. Shell

More articles in Journal of Economic Theory from Elsevier
Bibliographic data for series maintained by Catherine Liu ().