Stochastic Preference Theory: Some Unresolved Questions

1980 ◽  
Vol 17 (3) ◽  
pp. 379-382 ◽  
Author(s):  
Joan Zielinski
Keyword(s):  
Stochastic Choice ◽  
Preference Theory ◽  
Preference Group ◽  
Brand Switching ◽  
Stochastic Preference

The theory of stochastic preference and brand switching proposed by Bass appears to be unable to estimate brand switching in the independent subgroups of the stochastic preference group. Also, the estimation of the probability of stochastic choice is sometimes problematic.

The Theory of Stochastic Preferences: Further Comments and Clarifications

1981 ◽  
Vol 18 (3) ◽  
pp. 364-369 ◽  
Author(s):  
Subhash Sharma
Keyword(s):  
Brand Loyalty ◽  
General Level ◽  
Product Class ◽  
Multinomial Model ◽  
Product Categories ◽  
Brand Switching ◽  
Market Shares ◽  
Switching Models ◽  
Share Data ◽  
Stochastic Preference

The theory of stochastic preference and brand switching uses market share data and a parameter ρ for generating switching matrices. In particular, ρ facilitates the generation of different matrices for different product categories having similar market shares. The parameter ρ has been termed a measure of product class brand loyalty. Because of the numerous conceptual definitions of brand loyalty, the author provides some additional insights into the meaningful interpretation of ρ. Furthermore, he emphasizes that at a general level a nonhomogeneous multinomial model can be used to represent most of the brand switching models.

scholarly journals Orbitofrontal signals for two-component choice options comply with indifference curves of Revealed Preference Theory

2019 ◽  
Vol 10 (1) ◽  
Author(s):  
Alexandre Pastor-Bernier ◽  
Arkadiusz Stasiak ◽  
Wolfram Schultz
Keyword(s):  
Orbitofrontal Cortex ◽  
Revealed Preference ◽  
Confidence Limits ◽  
Stochastic Choice ◽  
Preference Theory ◽  
Economic Choice ◽  
Multiple Components ◽  
Economic Decision Making ◽  
Two Component ◽  
Revealed Preference Theory

Abstract Economic choice options contain multiple components and constitute vectorial bundles. The question arises how they are represented by single-dimensional, scalar neuronal signals that are suitable for economic decision-making. Revealed Preference Theory provides formalisms for establishing preference relations between such bundles, including convenient graphic indifference curves. During stochastic choice between bundles with the same two juice components, we identified neuronal signals for vectorial, multi-component bundles in the orbitofrontal cortex of monkeys. A scalar signal integrated the values from all bundle components in the structured manner of the Theory; it followed the behavioral indifference curves within their confidence limits, was indistinguishable between differently composed but equally revealed preferred bundles, predicted bundle choice and complied with an optimality axiom. Further, distinct signals in other neurons coded the option components separately but followed indifference curves as a population. These data demonstrate how scalar signals represent vectorial, multi-component choice options.

The Theory of Stochastic Preference and Brand Switching

1974 ◽  
Vol 11 (1) ◽  
pp. 1-20 ◽  
Author(s):  
Frank M. Bass
Keyword(s):  
General Theory ◽  
Strong Evidence ◽  
Choice Behavior ◽  
Brand Choice ◽  
Substantial Agreement ◽  
Brand Switching ◽  
Stochastic Preference

Strong evidence will be introduced which suggests that brand choice behavior is substantially stochastic. A general theory of stochastic preference is presented and tested. Brand switching data are shown to be in substantial agreement with the theory.

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