Year: 1998
Type: preprint
Abstract: :\nThis paper discusses the problem of specifying probabilistic models for choices (strategies) with\nuncertain outcomes. The point of departure is an extension of the axiom system of the von\nNeumann-Morgenstern Expected utility theory to the case when the preferences are stochastic. This\nextended axiom system is combined with Luce Choice Axiom; "Independence from Irrelevant\nAlternatives", and imply a particular choice model that contains the Luce model as a special case. An\nadditional invariance assumption is subsequently proposed that yields a complete characterization of\nthe mathematical structure of the model.\nKeywords: Random tastes, choice among lotteries, random utility models, bounded rationality,\nprobabilistic choice models, independence from irrelevant alternatives.
Author: John K. Dagsvik
Language: English
Subfield: General Decision Sciences
Field: Decision Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2156433341