What independent random utility representations ar

Authors: John K Dagsvik

Publish Date: 2014/12/12

Volume: 80, Issue: 3, Pages: 495-499

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Abstract

This paper discusses random utility representations of the Luce model Luce Individual choice behavior a theoretical analysis 1959 Earlier works such as McFadden Frontier in econometrics 1973 Yellott J Math Psychol 15109–144 1977 and Strauss J Math Psychol 2035–52 1979 have discussed random utility representations under the assumption that utilities are additively or multiplicatively separable in a deterministic and a random part Under various conditions they have established that a separable and independent random utility representation exists if and only if the random terms are type III type I extreme value distributed This paper analyzes independent random utility representations without the separability condition and with an infinite universal set of alternatives Under these assumptions it turns out that the most general random utility representation of the Luce model is a utility function that is an arbitrary strictly increasing transformation of a separable utility function additive or multiplicative with extreme value distributed random terms

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