Progressive Random Choice

• 成果类型: Article; Early Access
• 署名作者: Filiz-Ozbay, Emel; Masatlioglu, Yusufcan
• 署名单位: University System of Maryland; University of Maryland College Park
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/721732
• 发表日期: 2023
• 关键词: Stochastic choice; preferences; temptation; inference; MODEL; less; RULE

摘要

We introduce a flexible framework to study probabilistic choice that accommodates heterogeneous types and bounded rationality. We provide a novel progressive structure for the heterogeneous types to capture heterogeneity due to varying levels of a behavioral trait. Given an order of alternatives, our progressive structure sorts the types by the extent to which they align with this order. Unlike the random-utility model, our model uniquely identifies the heterogeneity, allowing policy makers to perform an improved welfare analysis. As a showcase, we provide characterization of a well-studied type of bounded rationality: less-is-more. In addition, we provide conditions for unique identification of the underlying order for the less-is-more structure.