A random reference model

Kıbrıs, Özgür and Masatlıoglu, Yusufcan and Suleymanov, Elchin (2021) A random reference model. [Working Paper / Technical Report] Sabanci University ID:UNSPECIFIED

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We provide two nested models of random reference-dependent choice in which the reference point is endogenously determined by random processes. Random choice behavior is due to random reference points even though, from the viewpoint of the decision maker, choices are deterministic. We first propose and characterize a parametric random reference model. The components of this model can be identified from observed choices. We then illustrate that similar revelations hold in a much general model as well. Hence, our work is within the revealed preference paradigm.
Item Type: Working Paper / Technical Report
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Arts and Social Sciences > Academic programs > Economics
Faculty of Arts and Social Sciences
Depositing User: Özgür Kıbrıs
Date Deposited: 03 Oct 2022 17:59
Last Modified: 03 Oct 2022 17:59
URI: https://research.sabanciuniv.edu/id/eprint/44686

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