Independence of Irrelevant Decisions in Stochastic Choice

Speaker: Prof Omer Tamuz

Affiliation: California Tech

Location: Room 101, Chamberlain Building (#35), St Lucia Campus

Zoom: https://uqz.zoom.us/j/82603079317

Abstract: We investigate stochasticity in choice behavior across diverse decisions. Each decision is modeled as a menu of actions with associated outcomes, and a stochastic choice rule assigns probabilities to actions based on the outcome profile. We characterize rules whose predictions are not affected by whether or not additional, irrelevant decisions are included in the model. Our main result is that such rules form the parametric family of mixed-logit rules.