IDEAS home Printed from https://ideas.repec.org/p/cca/wpaper/237.html
   My bibliography  Save this paper

A General Behavioural Model of Random Choice

Author

Listed:
  • Paola Manzini
  • Marco Mariotti

Abstract

We develop and study a stochastic eliminative choice procedure, called choice by random checklist (CRC). On the one hand CRC extends the idea of Tversky's Elimination by Aspects (EBA) to explain, for example, stochastically intransitive choices. On the other hand a special case of CRC is equivalent to random utility maximisation (RUM). In this way we bring within a single formal framework two leading random choice models in economics and in psychology, which are otherwise difficult to relate. Unlike EBA, which is defined recursively, we give an explicit formula for the choice probabilites in a CRC. We show that a CRC satisfies Monotonicity (extending a result of Sattath and Tversky [14]). We define new testable properties, Stochastic WARP and the Probabilistic Inequality, that are satisfied by CRC (and so, in particular, by a RUM).

Suggested Citation

  • Paola Manzini & Marco Mariotti, 2011. "A General Behavioural Model of Random Choice," Carlo Alberto Notebooks 237, Collegio Carlo Alberto.
  • Handle: RePEc:cca:wpaper:237
    as

    Download full text from publisher

    File URL: http://www.carloalberto.org/assets/working-papers/no.237.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Mandler, Michael & Manzini, Paola & Mariotti, Marco, 2012. "A million answers to twenty questions: Choosing by checklist," Journal of Economic Theory, Elsevier, vol. 147(1), pages 71-92.
    2. Barbera, Salvador & Pattanaik, Prasanta K, 1986. "Falmagne and the Rationalizability of Stochastic Choices in Terms of Random Orderings," Econometrica, Econometric Society, vol. 54(3), pages 707-715, May.
    3. Daniel McFadden, 2001. "Economic Choices," American Economic Review, American Economic Association, vol. 91(3), pages 351-378, June.
    4. Faruk Gul & Paulo Natenzon & Wolfgang Pesendorfer, 2014. "Random Choice as Behavioral Optimization," Econometrica, Econometric Society, vol. 82, pages 1873-1912, September.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Random Utility Maximization; Elimination by Aspects; Eliminative heuristics;

    JEL classification:

    • D0 - Microeconomics - - General

    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:cca:wpaper:237. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Giovanni Bert). General contact details of provider: http://edirc.repec.org/data/fccaait.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.