Discrete choice models and stochastic utility maximization

Ruud H. Koning*, G. Ridder

*Bijbehorende auteur voor dit werk

Onderzoeksoutput: ArticleAcademic


Discrete choice models are usually derived from the assumption of random utility maximization. We consider the reverse problem, whether choice probabilities are consistent with maximization of random utilities. This leads to tests that consider the variation of these choice probabilities with the average utilities of the alternatives. By restricting the range of the average utilities we obtain a sequence of tests with fewer maintained assumptions. In an empirical application, even the test with the fewest maintained assumptions rejects the hypothesis of random utility maximization.
Originele taal-2English
Pagina's (van-tot)1-27
Aantal pagina's27
TijdschriftThe Econometrics Journal
Nummer van het tijdschrift1
StatusPublished - 2003

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