Testing the Random Utility Hypothesis Directly
Bibliographic Data
| ID | 9704569 |
|---|---|
| Authors | William J McCausland (0000-0002-9896-235X, Université de Montréal, corresponding author), Clintin P Davis‐Stober (0000-0002-6836-6979, University of Missouri), Clintin Davis-Stober (University of Missouri), Aaj Marley (0000-0002-6551-0306, Department of Psychology, University of Victoria; Institute for Choice, University of South Australia Business School), A A J Marley (0000-0001-9124-3769, University of South Australia), Sanghyuk Park (0000-0003-0169-5687, University of Missouri), Nicholas Brown (0000-0002-0712-1281, University of Missouri), Nicholas J L Brown (0000-0003-1579-0730, University of Missouri) |
| Year | 2020 |
| Volume | 130 |
| Issue | 625 |
| Pages | 183-207 |
| Publication date | 2020-01-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (PUBLISHER • GB) |
| DOI | 10.1093/ej/uez039 |
| OpenAlex | W2963498380 |
| Language | EN |
| Citations received | 3 |
| References cited | 16 |
We test a set of inequalities in choice probabilities, shown to be necessary and sufficient for random utility by Falmagne (1978). We run an experiment in which each of 141 participants chooses six times from each doubleton or larger subset of a universe of five lotteries. We compute Bayes factors in favour of random utility, versus an alternative with unrestricted choice probabilities. There is strong evidence that a large majority of participants satisfy random utility; however, there is strong evidence against random utility for four participants. Results are fairly robust to the choice of prior
Bayes' theorem · Bayesian probability · Econometrics · Expected utility hypothesis · Set (abstract data type · Statistics · Computer Science · Decision-Making and Behavioral Economics · Economic and Environmental Valuation · Experimental Behavioral Economics Studies · Mathematics
| Unique citing works | 3 |
|---|---|
| Citations per year | 0,6 |
| Citation span | 2021 - 2025 (5) |
| Citation velocity | recent |
| Highly cited | No |
| Citation types | Neutral: 3 |