Menu-Dependent Stochastic Feasibility
Richard L. Brady, John Rehbeck
Econometrica · 2016 · Volume 84 · Issue 3
Abstract
We examine the role of stochastic feasibility in consumer choice using arandom conditional choice set rule(RCCSR) and uniquely characterize the model from conditions on stochastic choice data. Feasibility is modeled to permit correlation in availability of alternatives. This provides a natural way to examine substitutability/complementarity. We show that an RCCSR generalizes therandom consideration set ruleof [Manzini and Mariotti, 2014]. We then relate this model to existing literature. In particular, an RCCSR is not a random utility model.
Keywords
Stochastic choice, discrete choice, feasibility, random utility models, revealed preference
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