An axiomatic foundation of conditional logit

• Published in: Economic theory Vol. 72; no. 1; pp. 245 - 261
• Main Author: Breitmoser, Yves
• Format: Journal Article
• Language: English
• Published: Berlin, Heidelberg Springer 01.07.2021; Springer Berlin Heidelberg; Springer Nature B.V
• Subjects: Assumptions; Axiomatic foundation; Conditional logit; Economic theory; Economic Theory/Quantitative Economics/Mathematical Methods; Economics; Economics and Finance; Expected utility; Game Theory; Microeconomics; Public Finance; Research Article; Social and Behav. Sciences; Translation; Utility functions; Germany; Conditional logit; Axiomatic foundation; D01; C13

This paper considers a decision maker choosing from a set of options when options have multiple real-valued attributes. Assuming DM chooses all options with positive probability, four invariance assumptions are necessary and sufficient for choice probabilities to take McFadden’s conditional logit fo...