Discussion Papers no. 221
Choice among lotteries when preferences are stochastic
This paper discusses the problem of specifying probabilistic models for choices (strategies) with uncertain outcomes. The point of departure is an extension of the axiom system of the von Neumann-Morgenstern Expected utility theory to the case when the preferences are stochastic. This extended axiom system is combined with Luce Choice Axiom; "Independence from Irrelevant Alternatives", and imply a particular choice model that contains the Luce model as a special case. An additional invariance assumption is subsequently proposed that yields a complete characterization of the mathematical structure of the model.
Om publikasjonen
- Tittel
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Choice among lotteries when preferences are stochastic
- Ansvarlig
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John K. Dagsvik
- Serie og -nummer
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Discussion Papers no. 221
- Utgiver
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Statistics Norway, Research Department
- Emne
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Discussion Papers
- Antall sider
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24
- Målform
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Engelsk
- Om Discussion Papers
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Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.
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