Random Choice as Behavioral Optimization

Faruk Gul, Paulo Natenzon and Wolfgang Pesendorfer ()

Econometrica, 2014, vol. 82, 1873-1912

Abstract: We develop an extension of Luce's random choice model to study violations of the weak axiom of revealed preference. We introduce the notion of a stochastic preference and show that it implies the Luce model. Then, to address well‐known difficulties of the Luce model, we define the attribute rule and establish that the existence of a well‐defined stochastic preference over attributes characterizes it. We prove that the set of attribute rules and random utility maximizers are essentially the same. Finally, we show that both the Luce and attribute rules have a unique consistent extension to dynamic problems.vskip=‐17.5pt]Author: please provide at least three Key Words that describe the article.

Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (74)

Downloads: (external link)
http://hdl.handle.net/

Related works:
Journal Article: Random Choice as Behavioral Optimization (2014)
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:wly:emetrp:v:82:y:2014:i::p:1873-1912

Ordering information: This journal article can be ordered from
https://www.economet ... ordering-back-issues

Access Statistics for this article

Econometrica is currently edited by Guido W. Imbens

More articles in Econometrica from Econometric Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().