Hess, S orcid.org/0000-0002-3650-2518, Daly, A and Batley, R (2018) Revisiting consistency with random utility maximisation: theory and implications for practical work. Theory and Decision, 84 (2). pp. 181-204. ISSN 0040-5833
Abstract
While the paradigm of utility maximisation has formed the basis of the majority of applications in discrete choice modelling for over 40 years, its core assumptions have been questioned by work in both behavioural economics and mathematical psychology as well as more recently by developments in the RUM-oriented choice modelling community. This paper reviews the basic properties with a view to explaining the historical pre-eminence of utility maximisation and addresses the question of what departures from the paradigm may be necessary or wise in order to accommodate richer behavioural patterns. We find that many, though not all, of the behavioural traits discussed in the literature can be approximated sufficiently closely by a random utility framework, allowing analysts to retain the many advantages that such an approach possesses.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | (c) 2017, The Author(s). This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (https://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made. |
Keywords: | Random utility maximisation; RUM properties; Behavioural patterns; Discrete choice |
Dates: |
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Institution: | The University of Leeds |
Funding Information: | Funder Grant number EU - European Union 615596 |
Depositing User: | Symplectic Publications |
Date Deposited: | 21 Mar 2018 09:21 |
Last Modified: | 25 Jun 2023 21:16 |
Status: | Published |
Publisher: | Springer |
Identification Number: | 10.1007/s11238-017-9651-7 |
Related URLs: | |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:128700 |