We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Deliberately Stochastic.
- Authors
Cerreia-Vioglio, Simone; Dillenberger, David; Ortoleva, Pietro; Riella, Gil
- Abstract
We study stochastic choice as the outcome of deliberate randomization. We derive a general representation of a stochastic choice function where stochasticity allows the agent to achieve from any set the maximal element according to her underlying preferences over lotteries. We show that in this model stochasticity in choice captures complementarity between elements in the set, and thus necessarily implies violations of Regularity/Monotonicity, one of the most common properties of stochastic choice. This feature separates our approach from other models, e.g., Random Utility. (JEL D80, D81)
- Subjects
STOCHASTIC processes; RANDOMIZATION (Statistics); SET theory; PROBABILITY theory; UNCERTAIN systems
- Publication
American Economic Review, 2019, Vol 109, Issue 7, p2425
- ISSN
0002-8282
- Publication type
Article
- DOI
10.1257/aer.20180688