To refer to this page use:
|Abstract:||© 2014 The Econometric Society. 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 welldefined 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.|
|Citation:||Gul, F, Natenzon, P, Pesendorfer, W. (2014). Random choice as behavioral optimization. Econometrica, 82 (5), 1873 - 1912. doi:10.3982/ECTA10621|
|Pages:||1873 - 1912|
|Type of Material:||Journal Article|
|Version:||Final published version. Article is made available in OAR by the publisher's permission or policy.|
Items in OAR@Princeton are protected by copyright, with all rights reserved, unless otherwise indicated.