Branching-independent random utility model

• 成果类型: Article
• 署名作者: Suleymanov, Elchin
• 署名单位: Purdue University System; Purdue University
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2024.105880
• 发表日期: 2024
• 关键词: Stochastic choice; Random utility model

摘要

This paper introduces a subclass of the Random Utility Model (RUM), called branching- independent RUM. In this subclass, the probability distribution over the ordinal rankings of alternatives satisfies the following property: for any k is an element of {1, , ... , n -1}, where n denotes the number of alternatives, when fixing the first k and the last n - k alternatives, the relative rankings of the first k and the last n - k alternatives are independent. Branching-independence is motivated by the classical example due to Fishburn (1998), which illustrates the non-uniqueness problem in random utility models. Surprisingly, branching-independent RUM is characterized by the BlockMarschak condition, which also characterizes general RUM. In fact, I show that a construction similar to the one used in Falmagne (1978) generates a branching-independent RUM. In addition, within the class of branching-independent RUMs, the probability distribution over preferences is uniquely determined. Hence, while branching-independent RUM has the same explanatory power as general RUM, it is uniquely identified.