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Revealed stochastic choice with attributes

Author

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  • Roy Allen

    (University of Western Ontario)

  • John Rehbeck

    (The Ohio State University)

Abstract

Many theoretical models of stochastic choice are characterized by availability variation. Instead, most stochastic choice datasets have information on attribute values that vary across decision problems. This paper uses attribute variation to characterize a framework that encompasses existing interpretations of stochastic choice including consideration sets and nested choice behavior. The model has utility indices that depend on attribute values, and is characterized by a monotonicity condition relating probabilities and utility indices. Linear utility indices can be estimated for the model using existing methods without taking a stand on a single reason why choice is stochastic.

Suggested Citation

  • Roy Allen & John Rehbeck, 2023. "Revealed stochastic choice with attributes," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 75(1), pages 91-112, January.
    • Handle: RePEc:spr:joecth:v:75:y:2023:i:1:d:10.1007_s00199-021-01405-1
    DOI: 10.1007/s00199-021-01405-1
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    References listed on IDEAS

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    Citations

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    Cited by:

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    3. Zhou, Jing, 2024. "Does correlation matter in probability matching? A laboratory investigation," Journal of Economic Behavior & Organization, Elsevier, vol. 224(C), pages 876-894.

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    More about this item

    Keywords

    Stochastic choice; Revealed preference; Attributes; Aggregation;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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