Regret, responsibility, and randomization: A theory of stochastic choice

• 成果类型: Article
• 署名作者: Heydari, Pedram
• 署名单位: Northeastern University
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2024.105824
• 发表日期: 2024
• 关键词: Stochastic choice; random choice; Regret aversion; Responsibility aversion; Deliberate randomization

摘要

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.