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Econometrica Vol. 84 No. 3 2016

Menu-Dependent Stochastic Feasibility

Richard L. Brady; John Rehbeck

Abstract

We examine the role of stochastic feasibility in consumer choice using a random conditional choice set rule (RCCSR) and uniquely characterize the model from conditions on stochastic choice data. Feasibility is modeled to permit correlation in availability of alternatives. This provides a natural way to examine substitutability/complementarity. We show that an RCCSR generalizes the random consideration set rule of [Manzini and Mariotti, 2014]. We then relate this model to existing literature. In particular, an RCCSR is not a random utility model.

DOI
10.3982/ecta12694
Volume
84
Issue
3
Pages
1203-1223
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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