Revealed stochastic choice with attributes

2022 ◽  
Author(s):  
Roy Allen ◽  
John Rehbeck
Keyword(s):  
Stochastic Choice

scholarly journals Investigation of the Stochastic Choice under Risk using Experimental Data

2020 ◽  
Vol 22 (2) ◽  
pp. 137
Author(s):  
Yudistira Permana ◽  
Giovanni Van Empel ◽  
Rimawan Pradiptyo
Keyword(s):  
Expected Utility ◽  
Goodness Of Fit ◽  
Random Utility ◽  
Utility Model ◽  
Stochastic Choice ◽  
Decisions Under Risk ◽  
Empirical Performance ◽  
Maximum Likelihood Technique ◽  
Better Than ◽  
The Eu

This paper extends the analysis of the data from the experiment undertaken by Pradiptyo et al. (2015), to help explain the subjects’ behaviour when making decisions under risk. This study specifically investigates the relative empirical performance of the two general models of the stochastic choice: the random utility model (RUM) and the random preference model (RPM) where this paper specifies these models using two preference functionals, expected utility (EU) and rank-dependent expected utility (RDEU). The parameters are estimated in each model using a maximum likelihood technique and run a horse-race using the goodness-of-fit between the models. The results show that the RUM better explains the subjects’ behaviour in the experiment. Additionally, the RDEU fits better than the EU for modelling the stochastic choice. 

scholarly journals Not just noise: A goal pursuit interpretation of stochastic choice.

Decision ◽  
2018 ◽  
Vol 5 (4) ◽  
pp. 253-271 ◽  
Author(s):  
Ann Wallin ◽  
Joffre Swait ◽  
A. A. J. Marley
Keyword(s):  
Goal Pursuit ◽  
Stochastic Choice

Modeling Imprecision in Perception, Valuation, and Choice

2020 ◽  
Vol 12 (1) ◽  
pp. 579-601 ◽  
Author(s):  
Michael Woodford
Keyword(s):  
Decision Making ◽  
Experimental Psychology ◽  
Quantitative Relationship ◽  
Strategic Interaction ◽  
Economic Modeling ◽  
Stochastic Choice ◽  
Global Game ◽  
Perceptual Judgments ◽  
Economic Decision Making ◽  
Decoy Effects

Traditional decision theory assumes that people respond to the exact features of the options available to them, but observed behavior seems much less precise. This review considers ways of introducing imprecision into models of economic decision making and stresses the usefulness of analogies with the way that imprecise perceptual judgments are modeled in psychophysics—the branch of experimental psychology concerned with the quantitative relationship between objective features of an observer's environment and elicited reports about their subjective appearance. It reviews key ideas from psychophysics, provides examples of the kinds of data that motivate them, and proposes lessons for economic modeling. Applications include stochastic choice, choice under risk, decoy effects in marketing, global game models of strategic interaction, and delayed adjustment of prices in response to monetary disturbances.

Adding Explanatory Variables to a Consumer Purchase Behavior Model: An Exploratory Study

1980 ◽  
Vol 17 (3) ◽  
pp. 323-334 ◽  
Author(s):  
J. Morgan Jones ◽  
Fred S. Zufryden
Keyword(s):  
Exploratory Study ◽  
Choice Model ◽  
Purchase Behavior ◽  
Product Class ◽  
Behavior Model ◽  
Stochastic Choice ◽  
Explanatory Variables ◽  
Logit Regression ◽  
Purchase Incidence

A new stochastic choice model is proposed which can incorporate any number of explanatory variables. The model combines logit regression, heterogeneity, and product class purchase incidence concepts. The authors describe an exploratory study of the model, in which it is found to fit a certain situation very well.

Sign in / Sign up

Export Citation Format

Share Document