Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/197140 
Year of Publication: 
2018
Citation: 
[Journal:] Theoretical Economics [ISSN:] 1555-7561 [Volume:] 13 [Issue:] 1 [Publisher:] The Econometric Society [Place:] New Haven, CT [Year:] 2018 [Pages:] 61-85
Publisher: 
The Econometric Society, New Haven, CT
Abstract: 
We investigate stochastic choice when only the average and not the entire distribution of choices is observable, focusing attention on the popular Luce model. Choice is pathindependent if it is recursive,in the sense that choosing from a menu can be broken up into choosing from smaller submenus.While an important property, path independence is known to be incompatible with continuous choice. The main result of our paper is that a natural modification of path independence, which we call partial path independence, is not only compatible with continuity, but ends up characterizing the ubiquitous Luce (or logit) rule.
Subjects: 
Luce model
stochastic choice
logit model
path independence
JEL: 
D01
D11
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Article

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