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Dynamic Random Choice (2102.00143v2)
Published 30 Jan 2021 in econ.TH
Abstract: I study dynamic random utility with finite choice sets and exogenous total menu variation, which I refer to as stochastic utility (SU). First, I characterize SU when each choice set has three elements. Next, I prove several mathematical identities for joint, marginal, and conditional Block--Marschak sums, which I use to obtain two characterizations of SU when each choice set but the last has three elements. As a corollary under the same cardinality restrictions, I sharpen an axiom to obtain a characterization of SU with full support over preference tuples. I conclude by characterizing SU without cardinality restrictions. All of my results hold over an arbitrary finite discrete time horizon.