Regret, responsibility, and randomization: A theory of stochastic choice
Year: 2024
Type: article
Abstract: I provide a model of deliberate stochastic choice over acts (state-contingent payoffs). In this model, the decision maker finds randomization desirable since it reduces responsibility and regret after the state uncertainty resolves. I provide an axiomatic characterization of stochastic choices compatible with this model. I also discuss the comparative statics and some behavioral implications of the model and outline potential avenues for extending and generalizing the model.
Source: Journal of Economic Theory
Author: Pedram Heydari
Institution: Northeastern University
Language: English
Subfield: General Decision Sciences
Field: Decision Sciences
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $2,810
OpenAlex ID: W4392946884