Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/197155
Authors: 
Ke, Shaowei
Year of Publication: 
2018
Citation: 
[Journal:] Theoretical Economics [ISSN:] 1555-7561 [Volume:] 13 [Year:] 2018 [Issue:] 2 [Pages:] 527-552
Abstract: 
We characterize axiomatically a stochastic choice model, the consistent-mistakes model (CMM), that describes an error-prone decision maker's choices. In contrast to random utility models, CMMs generate closed-form choice probability. Under the axioms, we uniquely identify from the choices an expected utility function that represents the decision maker's true preference and a propensity function that describes how likely an alternative is to be chosen. We introduce a measure of error-proneness and show that the logit model of mistakes is a CMM with a constant measure of error-proneness, characterized by a strong version of the independence axiom from expected utility theory. We analyze the properties of models of mistakes.
Subjects: 
Stochastic choice
error-proneness
logit model
JEL: 
D00
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc/4.0/
Document Type: 
Article

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