Revealed preference domains from random choice

Ordinal random utility models (RUMs) are based on the presumption that fluctuating preferences drive stochastic choices. We study a novel property of RUM subclasses called exclusiveness, satisfied whenever the supports of all RUM representations of stochastic choice data, rationalizable by a RUM over preferences within a specific domain, also belong to that domain. We demonstrate that well-known preference domains such as the single-peaked, single-dipped, triple-wise value-restricted and peak-monotone are RUM-exclusive, alongside a novel domain we term peak-pit on a line. Building on existing characterization results, we show how these preference domains can be directly revealed from stochastic choice data, without the need to compute all RUM representations.

Publication Details

Journal
Repository for Publications and Research Data (ETH Zurich)
Published
2024-09-01
DOI
https://doi.org/10.3929/ethz-b-000691675
Primary Topic
Decision-Making and Behavioral Economics
Type
article
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article

Revealed preference domains from random choice

Repository for Publications and Research Data (ETH Zurich)
Decision-Making and Behavioral Economics
article

Revealed preference domains from random choice

article en

Abstract

Ordinal random utility models (RUMs) are based on the presumption that fluctuating preferences drive stochastic choices. We study a novel property of RUM subclasses called exclusiveness, satisfied whenever the supports of all RUM representations of stochastic choice data, rationalizable by a RUM over preferences within a specific domain, also belong to that domain. We demonstrate that well-known preference domains such as the single-peaked, single-dipped, triple-wise value-restricted and peak-monotone are RUM-exclusive, alongside a novel domain we term peak-pit on a line. Building on existing characterization results, we show how these preference domains can be directly revealed from stochastic choice data, without the need to compute all RUM representations.

Repository for Publications and Research Data (ETH Zurich)
Reduced inequalities
Openalex Percentile: Top 65%
Decision-Making and Behavioral Economics
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Revealed preference domains from random choice · Repository for Publications and Research Data (ETH Zurich) (2024) | TGRS Research Map | TGRS