 Random utility models with status quo biasBoyao Li Journal of Mathematical Economics, 2023, vol. 105, issue C Abstract: Status quo bias is one of the most commonly observed and attested behavioral biases in economic studies. I incorporate status quo bias into the Random Utility Model (RUM) and three of its special cases, including the Luce model, the Dual Random Utility Model (dRUM) and the Single-Crossing Random Utility Model (SCRUM). These behavioral RUMs generalize their non-behavioral counterparts, in which decision-makers (DMs) randomize over utility maximizing alternatives. Instead, in these behavioral models, DMs are only drawn to alternatives that are better than the status quo alternative and randomize their choices over utility maximizers among such alternatives. An axiomatic approach is employed to identify DMs who choose stochastically according to these RUMs but are subject to status quo bias. I also discuss the relationship between these models with other well-known behavioral RUMs in the literature. Keywords: Stochastic choice; Random utility models; Status quo bias; Luce model; Dual random utility model; Single-crossing property (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:mateco:v:105:y:2023:i:c:s0304406823000174 DOI: 10.1016/j.jmateco.2023.102824 Access Statistics for this article Journal of Mathematical Economics is currently edited by Atsushi (A.) Kajii More articles in Journal of Mathematical Economics from Elsevier |
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