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The Random Utility Model (RUM) is the leading model to represent the aggregate choices of a heterogeneous population of preference maximizers. We show that if (and only if) preferences are sufficiently uncorrelated, RUM choices can also be…

Theoretical Economics · Economics 2025-05-29 Daniele Caliari , Henrik Petri

A common assumption in modern microeconomic theory is that choice should be rationalizable via a binary preference relation, which \citeauthor{Sen71a} showed to be equivalent to two consistency conditions, namely $\alpha$ (contraction) and…

Multiagent Systems · Computer Science 2025-07-22 Felix Brandt , Paul Harrenstein

This paper examines the identification power of assumptions that formalize the notion of complementarity in the context of a nonparametric bounds analysis of treatment response. I extend the literature on partial identification via shape…

Methodology · Statistics 2020-12-16 Tate Twinam

Econometricians have usefully separated study of estimation into identification and statistical components. Identification analysis, which assumes knowledge of the probability distribution generating observable data, places an upper bound…

Econometrics · Economics 2025-09-03 Charles F. Manski

The random utility model is known to be unidentified, but there are times when the model admits a unique representation. We offer two characterizations for the existence of a unique random utility representation. Our first characterization…

Theoretical Economics · Economics 2023-02-14 Christopher Turansick

We extend a well-known theorem of Murski\v{\i} to the probability space of finite models of a system $\mathcal{M}$ of identities of a strong idempotent linear Maltsev condition. We characterize the models of $\mathcal{M}$ in a way that can…

Logic · Mathematics 2019-01-21 Clifford Bergman , Agnes Szendrei

When it comes to structural estimation of risk preferences from data on choices, random utility models have long been one of the standard research tools in economics. A recent literature has challenged these models, pointing out some…

General Economics · Economics 2024-09-04 Henk Keffert , Nikolaus Schweizer

Given a set of several inputs into a system (e.g., independent variables characterizing stimuli) and a set of several stochastically non-independent outputs (e.g., random variables describing different aspects of responses), how can one…

Artificial Intelligence · Computer Science 2011-08-30 Ehtibar N. Dzhafarov , Janne V. Kujala

Semiparametric inference on average causal effects from observational data is based on assumptions yielding identification of the effects. In practice, several distinct identifying assumptions may be plausible; an analyst has to make a…

Methodology · Statistics 2025-10-07 Tetiana Gorbach , Xavier de Luna , Juha Karvanen , Ingeborg Waernbaum

An experimenter seeks to learn a subject's preference relation. The experimenter produces pairs of alternatives. For each pair, the subject is asked to choose. We argue that, in general, large but finite data do not give close…

Theoretical Economics · Economics 2018-08-01 Christopher P. Chambers , Federico Echenique , Nicolas S. Lambert

McFadden and Richter (1991) and later McFadden (2005) show that the Axiom of Revealed Stochastic Preference characterizes rationalizability of choice probabilities through random utility models on finite universal choice spaces. This note…

Theoretical Economics · Economics 2019-02-21 Jörg Stoye

In this article, we construct semiparametrically efficient estimators of linear functionals of a probability measure in the presence of side information using an easy empirical likelihood approach. We use estimated constraint functions and…

Methodology · Statistics 2023-03-01 Shan Wang , Hanxiang Peng

The random utility model (RUM, McFadden and Richter, 1990) has been the standard tool to describe the behavior of a population of decision makers. RUM assumes that decision makers behave as if they maximize a rational preference over a…

General Economics · Economics 2022-07-05 Victor H. Aguiar , Maria Jose Boccardi , Nail Kashaev , Jeongbin Kim

A model for decision making that generalizes Expected Utility Maximization is presented. This model, Expected Qualitative Utility Maximization, encompasses the Maximin criterion. It relaxes both the Independence and the Continuity…

Computer Science and Game Theory · Computer Science 2007-05-23 Daniel Lehmann

In this paper, paired comparison models with stochastic background are investigated. We focus on the models that allow three options for choice. We estimate all parameters, the strength of the objects and the boundaries of equal decision,…

Optimization and Control · Mathematics 2025-02-20 László Gyarmati , Csaba Mihálykó , Eva Orbán-Mihálykó , András Mihálykó

I provide a model of rational inattention with heterogeneity and prove it is observationally equivalent to a state-dependent stochastic choice model subject to attention costs. I demonstrate that additive separability of unobservable…

Econometrics · Economics 2024-02-16 Martin Bustos

Mechanism design is addressed in the context of fair allocations of indivisible goods with monetary compensation. Motivated by a real-world social choice problem, mechanisms with verification are considered in a setting where (i) agents'…

Computer Science and Game Theory · Computer Science 2012-09-18 Gianluigi Greco , Francesco Scarcello

Incomplete preferences provide the epistemic foundation for models of imprecise subjective probabilities and utilities that are used in robust Bayesian analysis and in theories of bounded rationality. This paper presents a simple…

Statistics Theory · Mathematics 2007-06-13 Robert Nau

Mathematical models are invaluable for understanding and predicting how biological systems behave, although their construction requires specifying mechanisms and relationships that are often not perfectly known. In the presence of multiple…

Many economic theory models incorporate finiteness assumptions that, while introduced for simplicity, play a real role in the analysis. We provide a principled framework for scaling results from such models by removing these finiteness…

Computer Science and Game Theory · Computer Science 2023-04-11 Yannai A. Gonczarowski , Scott Duke Kominers , Ran I. Shorrer