Indifference, indecisiveness, experimentation and stochastic choice

Efe A. Ok () and Gerelt Tserenjigmid ()
Additional contact information
Efe A. Ok: Department of Economics and the Courant Institute of Mathematical Sciences, New York University
Gerelt Tserenjigmid: Department of Economics, University of California Santa Cruz

Theoretical Economics, 2022, vol. 17, issue 2

Abstract: Among the reasons behind the choice behavior of an individual taking a stochastic form are her potential indifference or indecisiveness between certain alternatives, and/or her willingness to experiment in the sense of occasionally deviating from choosing a best alternative in order to give a try to other options. We introduce methods of identifying if, and when, a stochastic choice model may be thought of as arising due to any one of these three reasons. Each of these methods furnishes a natural way of making deterministic welfare comparisons within any model that is rationalized as such. In turn, we apply these methods, and characterize the associated welfare orderings, in the case of several well-known classes of stochastic choice models.

Keywords: Stochastic choice; indifference; incomplete preferences; experimentation; the general Luce model; random utility; additive perturbed utility; individual welfare (search for similar items in EconPapers)
JEL-codes: D01 D11 D81 D91 (search for similar items in EconPapers)
Date: 2022-05-05
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://econtheory.org/ojs/index.php/te/article/viewFile/20220651/33806/980 (application/pdf)

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:the:publsh:4216

Access Statistics for this article

Theoretical Economics is currently edited by Simon Board, Todd D. Sarver, Juuso Toikka, Rakesh Vohra, Pierre-Olivier Weill

More articles in Theoretical Economics from Econometric Society
Bibliographic data for series maintained by Martin J. Osborne ().