Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/288465 
Year of Publication: 
2020
Citation: 
[Journal:] Economic Theory [ISSN:] 1432-0479 [Volume:] 72 [Issue:] 1 [Publisher:] Springer [Place:] Berlin, Heidelberg [Year:] 2020 [Pages:] 245-261
Publisher: 
Springer, Berlin, Heidelberg
Abstract: 
This paper considers a decision maker choosing from a set of options when options have multiple real-valued attributes. Assuming DM chooses all options with positive probability, four invariance assumptions are necessary and sufficient for choice probabilities to take McFadden’s conditional logit form: independence of irrelevant alternatives, translation invariance, presentation independence and context independence. Variations on these assumptions yield generalized logit and contextual logit models. This shows that even specific logit models have behavioral foundations in simple invariance assumptions involving observables only, which therefore are directly testable.
Subjects: 
Conditional logit
Axiomatic foundation
JEL: 
D01
C13
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.