Categorize and randomize: a model of sequential stochastic choice

Ester Sudano

Papers from arXiv.org

Abstract: We model stochastic choices with categorization, resulting from the preliminary step of grouping alternatives in homogenous disjoint classes. The agent randomly chooses one class among those available, then randomly picks an item within the selected class. We give a formal definition of a choice generated by this procedure, and provide a characterization. The characterizing properties allow an external observer to elicit that categorization is applied. In a more general interpretation, the model allows to describe the observed choice as the composition of independent subchoices. This composition preserves rationalizability by random utility maximization. A generalization of the model subsumes Luce model and Nested Logit.

Date: 2024-12
New Economics Papers: this item is included in nep-dcm and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://arxiv.org/pdf/2412.03554 Latest version (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:arx:papers:2412.03554

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().