EconPapers    
Economics at your fingertips  
 

Random utility models with ordered types and domains

Jose Apesteguia and Miguel Ballester

Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra

Abstract: We study random utility models in which heterogeneity of preferences is modeled using an ordered collection of utilities, or types. The paper shows that these models are particularly amenable when combined with domains in which the alternatives of each decision problem are ordered by the structure of the types. We enhance their applicability by: (i) working with arbitrary domains composed of such decision problems, i.e., we do not need to assume any particularly rich data domain, and (ii) making no parametric assumption, i.e., we do not need to formulate any particular assumption on the distribution over the collection of types. We characterize the model by way of two simple properties and show the applicability of our result in settings involving decisions under risk. We also propose a goodness-of-fit measure for the model and prove the strong consistency of extremum estimators defined upon it. We conclude by applying the model to a dataset on lottery choices.

Keywords: Random utility model; ordered type-dependent utilities; arbitrary domains; non-parametric; goodness-of-fit; extremum estimators; decision under risk. (search for similar items in EconPapers)
JEL-codes: C00 D00 (search for similar items in EconPapers)
Date: 2020-04
New Economics Papers: this item is included in nep-gen and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://econ-papers.upf.edu/papers/1719.pdf Whole Paper (application/pdf)

Related works:
Journal Article: Random utility models with ordered types and domains (2023) Downloads
Working Paper: Random Utility Models with Ordered Types and Domains (2020) Downloads
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:upf:upfgen:1719

Access Statistics for this paper

More papers in Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra
Bibliographic data for series maintained by ( this e-mail address is bad, please contact ).

 
Page updated 2025-03-22
Handle: RePEc:upf:upfgen:1719