Revisiting consistency with random utility maximisation: theory and implications for practical work

• Published in: Theory and decision Vol. 84; no. 2; pp. 181 - 204
• Main Authors: Hess, Stephane, Daly, Andrew, Batley, Richard
• Format: Journal Article
• Language: English
• Published: New York Springer US 01.03.2018; Springer Nature B.V
• Subjects: Behavioral economics; Behavioral/Experimental Economics; Discrete choice; Economic Theory/Quantitative Economics/Mathematical Methods; Economics; Economics and Finance; Finance; Game Theory; Insurance; Management; Maximization; Operations Research/Decision Theory; Psychology; Quantitative psychology; Social and Behav. Sciences; Statistics for Business; Behavioural patterns; Random utility maximisation; Discrete choice; RUM properties

While the paradigm of utility maximisation has formed the basis of the majority of applications in discrete choice modelling for over 40 years, its core assumptions have been questioned by work in both behavioural economics and mathematical psychology as well as more recently by developments in the...