A Measure of Behavioral Heterogeneity

In this paper, we propose a novel way to measure behavioral heterogeneity in a population of stochastic individuals. Our measure is choice-based; it evaluates the probability that, over a randomly selected menu, the sampled choices of two sampled individuals differ. We provide axiomatic foundations for this measure and a decomposition result that separates heterogeneity into its intrapersonal and interpersonal components. (JEL D01, D11, D91)