Prior distributions for random choice structures
This paper is about nonparametric Bayesian analysis of random choice. Consider a master set \(T\) with \(n\) elements and call any collection of distributions on the possible subsets \(A\) of \(T\) a random choice structure. The distributions are interpreted as choice probabilities that arise in choice problem \(A\). The economic interpretation is either random choice by an individual or choices by members of a population with heterogeneous preferences. The authors propose a class of flexible, nonparametric priors over choice structures. This class implies prior probabilities of features of choice systems, notably axioms like the Marshak triangle inequality, different forms of stochastic transitivity, regularity (a stochastic property \(\alpha\)) and the event that choices are rationalizable by a distribution over preference orderings. The latter probability is small for most values of the prior's hyperparameter, illustrating that the set of rationalizable choice systems is small in the universe of choice systems. A limitation is that computations are only practical for rather small \(n\) (up to \(n=5\) in the paper). The authors leave to future research the computation of Bayes factors for axioms given data. Readers looking for Bayesian approaches to related problems might find [\textit{J. Geweke}, ``Nonparametric Bayesian modelling of monotone preferences for discrete choice experiments, J. Econometrics 171, No. 2, 185--204 (2012; \url{doi:10.1016/j.jeconom.2012.06.003})] of interest. For frequentist approaches, consider [\textit{C. F. Manski}, ``Partial identification of counterfactual choice probabilities, Int. Econ. Rev. 48, No. 4, 1393--1410 (2007; \url{doi:10.1111/j.1468-2354.2007.00467.x}); \textit{Y. Kitamura} and \textit{J. Stoye}, ``Nonparametric analysis of random utility models: testing, CeMMAP working papers CWP36/13, London: Institute for Fiscal Studies (2013), \url{http://www.cemmap.ac.uk/wps/cwp361313.pdf}].
- Bayesian inference and model comparison for random choice structures
- On ``choice probabilities derived from ranking distributions
- Probabilistic subjective expected utility
- A canon of probabilistic rationality
- The exchangeable multinomial model as an approach to testing deterministic axioms of choice and measurement
- A Bayesian approach to testing decision making axioms
- A characterization of stochastic independence by association with an application to random utility theory
- A lexicographic semiorder polytope and probabilistic representations of choice
- A representation theorem for finite random scale systems
- A selective review of recent characterizations of stochastic choice models using distribution and functional equation techniques
- A short proof of a theorem of Falmagne.
- An invariant form for the prior probability in estimation problems
- Bayesian inference and model comparison for random choice structures
- Discrete Choice Methods with Simulation
- scientific article; zbMATH DE number 3152611 (Why is no real title available?)
- scientific article; zbMATH DE number 3156726 (Why is no real title available?)
- scientific article; zbMATH DE number 3667770 (Why is no real title available?)
- scientific article; zbMATH DE number 3683298 (Why is no real title available?)
- scientific article; zbMATH DE number 578421 (Why is no real title available?)
- scientific article; zbMATH DE number 1484400 (Why is no real title available?)
- scientific article; zbMATH DE number 840151 (Why is no real title available?)
- Independent random utility representations
- Random utility models and their applications: Recent developments
- Random utility models with equality: An apparent, but not actual, generalization of random utility models
- Random utility representation of binary choice probabilities: Critical graphs yielding critical necessary conditions
- Some probabilistic models of best, worst, and best --- worst choices
- Statistical decision theory and Bayesian analysis. 2nd ed
- Statistical distributions.
- Statistical issues in measurement
- The choice axiom after twenty years
- THE PRECISION OF OBSERVED VALUES OF SMALL FREQUENCIES
- There Are Many Models of Transitive Preference: A Tutorial Review and Current Perspective
- Unite and Conquer: A Multiplicative Inequality for Choice Probabilities
- Assortment optimization under the sequential multinomial logit model
- The exchangeable multinomial model as an approach to testing deterministic axioms of choice and measurement
- Multinomial models with linear inequality constraints: overview and improvements of computational methods for Bayesian inference
- \textsc{QTest} 2.1: quantitative testing of theories of binary choice using Bayesian inference
- Bayesian inference and model comparison for random choice structures
- An illustrated guide to context effects
- On the multiplicative inequality
- Random utility without regularity
- A new algorithm to compute Bayes factors of order-constrained hypotheses about multiple binomials
This page was built for publication: Prior distributions for random choice structures
Report a bug (only for logged in users!)Click here to report a bug for this page (MaRDI item Q2437251)
