IDEAS home Printed from https://ideas.repec.org/a/the/publsh/4216.html
   My bibliography  Save this article

Indifference, indecisiveness, experimentation and stochastic choice

Author

Listed:
  • Ok, Efe A.

    (Department of Economics and the Courant Institute of Mathematical Sciences, New York University)

  • Tserenjigmid, Gerelt

    (Department of Economics, University of California Santa Cruz)

Abstract

Among the reasons behind the choice behavior of an individual taking a stochastic form are her potential indifference or indecisiveness between certain alternatives, and/or her willingness to experiment in the sense of occasionally deviating from choosing a best alternative in order to give a try to other options. We introduce methods of identifying if, and when, a stochastic choice model may be thought of as arising due to any one of these three reasons. Each of these methods furnishes a natural way of making deterministic welfare comparisons within any model that is rationalized as such. In turn, we apply these methods, and characterize the associated welfare orderings, in the case of several well-known classes of stochastic choice models.

Suggested Citation

  • Ok, Efe A. & Tserenjigmid, Gerelt, 2022. "Indifference, indecisiveness, experimentation and stochastic choice," Theoretical Economics, Econometric Society, vol. 17(2), May.
    • Handle: RePEc:the:publsh:4216
    as

    Download full text from publisher

    File URL: http://econtheory.org/ojs/index.php/te/article/viewFile/20220651/33806/980
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Marina Agranov & Pietro Ortoleva, 2017. "Stochastic Choice and Preferences for Randomization," Journal of Political Economy, University of Chicago Press, vol. 125(1), pages 40-68.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yohan Pelosse, 2024. "A Non-Cooperative Shapley Value Representation of Luce Contests Success Functions," Working Papers 2024-01, Swansea University, School of Management.
    2. Gorno, Leandro & Rivello, Alessandro T., 2023. "A maximum theorem for incomplete preferences," Journal of Mathematical Economics, Elsevier, vol. 106(C).
    3. Efe A. Ok & Gerelt Tserenjigmid, 2023. "Measuring Stochastic Rationality," Papers 2303.08202, arXiv.org, revised Dec 2023.
    4. Yoram Halevy & David Walker-Jones & Lanny Zrill, 2023. "Difficult Decisions," Working Papers tecipa-753, University of Toronto, Department of Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jacquemet, N. & Luchini, S. & Malézieux, A. & Shogren, J.F., 2020. "Who’ll stop lying under oath? Empirical evidence from tax evasion games," European Economic Review, Elsevier, vol. 124(C).
    2. Carlos Alós-Ferrer & Georg D. Granic, 2023. "Does choice change preferences? An incentivized test of the mere choice effect," Experimental Economics, Springer;Economic Science Association, vol. 26(3), pages 499-521, July.
    3. Simone Cerreia-Vioglio & David Dillenberger & Pietro Ortoleva & Gil Riella, 2019. "Deliberately Stochastic," American Economic Review, American Economic Association, vol. 109(7), pages 2425-2445, July.
      • Simone Cerreia-Vioglio & David Dillenberger & Pietro Ortoleva & Gil Riella, 2012. "Deliberately Stochastic," PIER Working Paper Archive 17-013, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 25 May 2017.
    4. Arts, Sara & Ong, Qiyan & Qiu, Jianying, 2020. "Measuring subjective decision confidence," MPRA Paper 117907, University Library of Munich, Germany.
    5. Germano, Fabrizio & Sobbrio, Francesco, 2020. "Opinion dynamics via search engines (and other algorithmic gatekeepers)," Journal of Public Economics, Elsevier, vol. 187(C).
    6. Soham R. Phade & Venkat Anantharam, 2020. "Black-Box Strategies and Equilibrium for Games with Cumulative Prospect Theoretic Players," Papers 2004.09592, arXiv.org.
    7. John Gibson & David Johnson, 0. "Breaking Bad: When Being Disadvantaged Incentivizes (Seemingly) Risky Behavior," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 0, pages 1-28.
    8. Emerson Melo, 2021. "Learning in Random Utility Models Via Online Decision Problems," Papers 2112.10993, arXiv.org, revised Aug 2022.
    9. Jack, B. Kelsey & McDermott, Kathryn & Sautmann, Anja, 2022. "Multiple price lists for willingness to pay elicitation," Journal of Development Economics, Elsevier, vol. 159(C).
    10. Patrick DeJarnette & David Dillenberger & Daniel Gottlieb & Pietro Ortoleva, 2020. "Time Lotteries and Stochastic Impatience," Econometrica, Econometric Society, vol. 88(2), pages 619-656, March.
    11. Paul Bokern & Jona Linde & Arno Riedl & Peter Werner, 2023. "The Robustness of Preferences during a Crisis: The Case of Covid-19," CESifo Working Paper Series 10595, CESifo.
    12. Cary Frydman & Ian Krajbich, 2022. "Using Response Times to Infer Others’ Private Information: An Application to Information Cascades," Management Science, INFORMS, vol. 68(4), pages 2970-2986, April.
    13. de Castro, Luciano & Galvao, Antonio F. & Noussair, Charles N. & Qiao, Liang, 2022. "Do people maximize quantiles?," Games and Economic Behavior, Elsevier, vol. 132(C), pages 22-40.
    14. Jeffrey E. Harris & Mariana Gerstenblüth & Patricia Triunfo, 2018. "Smokers’ Rational Lexicographic Preferences for Cigarette Package Warnings: A Discrete Choice Experiment with Eye Tracking," Documentos de Trabajo (working papers) 0218, Department of Economics - dECON.
    15. Wei Ma, 2023. "Random dual expected utility," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 75(2), pages 293-315, February.
    16. Antonio Estache & Renaud Foucart & Tomas Serebrisky, 2022. "When can Lotteries improve Public Procurement Processes?," Working Papers ECARES 2022-22, ULB -- Universite Libre de Bruxelles.
    17. Guo, Liang, 2021. "Contextual deliberation and the choice-valuation preference reversal," Journal of Economic Theory, Elsevier, vol. 195(C).
    18. Preuss, Malte, 2021. "Intra-individual stability of two survey measures on forward-looking attitude," Journal of Economic Behavior & Organization, Elsevier, vol. 190(C), pages 201-227.
    19. John Gibson & David Johnson, 2021. "Breaking Bad: When Being Disadvantaged Incentivizes (Seemingly) Risky Behavior," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 47(1), pages 107-134, January.
    20. Carlos Alós-Ferrer & Ernst Fehr & Nick Netzer, 2021. "Time Will Tell: Recovering Preferences When Choices Are Noisy," Journal of Political Economy, University of Chicago Press, vol. 129(6), pages 1828-1877.

    More about this item

    Keywords

    Stochastic choice; indifference; incomplete preferences; experimentation; the general Luce model; random utility; additive perturbed utility; individual welfare;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:the:publsh:4216. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Martin J. Osborne (email available below). General contact details of provider: http://econtheory.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.