Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/192205 
Year of Publication: 
1998
Series/Report no.: 
Discussion Papers No. 221
Publisher: 
Statistics Norway, Research Department, Oslo
Abstract: 
This paper discusses the problem of specifying probabilistic models for choices (strategies) with uncertain outcomes. The point of departure is an extension of the axiom system of the von Neumann-Morgenstern Expected utility theory to the case when the preferences are stochastic. This extended axiom system is combined with Luce Choice Axiom; "Independence from Irrelevant Alternatives", and imply a particular choice model that contains the Luce model as a special case. An additional invariance assumption is subsequently proposed that yields a complete characterization of the mathematical structure of the model.
Subjects: 
Random tastes
choice among lotteries
random utility models
bounded rationality
probabilistic choice models
independence from irrelevant alternatives.
JEL: 
C25
D11
D81
Document Type: 
Working Paper

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