On Duality In Random Utility Models
We provide the discrete choice, random utility counterparts of some basic results of consumer theory. For the primal problem and related Marshallian probabilities, we provide a new, simpler proof of Roy's identity at aggregate level and investigate price and income effects. For the dual problem and related Hicksian probabilities, we extend Shepard's lemma at aggregate level to unbound expenditure and investigate compensated price effects. We establish a primal-dual equivalence result and provide the counterpart of the Slutsky equation.
|Date of creation:||2013|
|Date of revision:||2013|
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- Viton, Philip A., 1985. "On the interpretation of income variables in discrete-choice models," Economics Letters, Elsevier, vol. 17(3), pages 203-206.
- Delle Site, Paolo, 2013. "Integration of choice probabilities in logit," Economics Letters, Elsevier, vol. 120(1), pages 57-60.
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