IDEAS home Printed from https://ideas.repec.org/a/ucp/jpolec/doi10.1086-721732.html
   My bibliography  Save this article

Progressive Random Choice

Author

Listed:
  • Emel Filiz-Ozbay
  • Yusufcan Masatlioglu

Abstract

We introduce a flexible framework to study probabilistic choice that accommodates heterogeneous types and bounded rationality. We provide a novel progressive structure for the heterogeneous types to capture heterogeneity due to varying levels of a behavioral trait. Given an order of alternatives, our progressive structure sorts the types by the extent to which they align with this order. Unlike the random-utility model, our model uniquely identifies the heterogeneity, allowing policy makers to perform an improved welfare analysis. As a showcase, we provide characterization of a well-studied type of bounded rationality: “less-is-more.” In addition, we provide conditions for unique identification of the underlying order for the less-is-more structure.

Suggested Citation

  • Emel Filiz-Ozbay & Yusufcan Masatlioglu, 2023. "Progressive Random Choice," Journal of Political Economy, University of Chicago Press, vol. 131(3), pages 716-750.
    • Handle: RePEc:ucp:jpolec:doi:10.1086/721732
    DOI: 10.1086/721732
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/721732
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: http://dx.doi.org/10.1086/721732
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: https://libkey.io/10.1086/721732?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

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


    Cited by:

    1. Apesteguia, Jose & Ballester, Miguel A., 2023. "Random utility models with ordered types and domains," Journal of Economic Theory, Elsevier, vol. 211(C).
    2. Daniele Caliari & Henrik Petri, 2024. "Irrational Random Utility Models," Papers 2403.10208, arXiv.org.

    More about this item

    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:ucp:jpolec:doi:10.1086/721732. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Journals Division (email available below). General contact details of provider: https://www.journals.uchicago.edu/JPE .

    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.