Indifference, indecisiveness, experimentation, and stochastic choice

Efe A. Ok, Gerelt Tserenjigmid

    Research output: Contribution to journalArticlepeer-review


    Among the reasons behind the choice behavior of an individual taking a stochastic form are her potential indifference or indecisiveness between certain alternatives, and/or her willingness to experiment in the sense of occasionally deviating from choosing a best alternative to give a try to other options. We introduce methods of identifying if and when a stochastic choice model may be thought of as arising due to any one of these three reasons. Each of these methods furnishes a natural way of making deterministic welfare comparisons within any model that is “rationalized” as such. In turn, we apply these methods, and characterize the associated welfare orderings, in the case of several well-known classes of stochastic choice models.

    Original languageEnglish (US)
    Pages (from-to)651-686
    Number of pages36
    JournalTheoretical Economics
    Issue number2
    StatePublished - May 2022


    • D01
    • D11
    • D81
    • D91
    • Stochastic choice
    • additive perturbed utility
    • experimentation
    • incomplete preferences
    • indifference
    • individual welfare
    • random utility
    • the general Luce model

    ASJC Scopus subject areas

    • General Economics, Econometrics and Finance


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