Random Collection

Abstract: This paper studies choice situations in which a decision maker can choose multiple alternatives. Given a menu of available options, the decision maker selects a subset of the menu with certain probabilities. We employ an axiomatic approach to characterize various parametric models in the literature. Our results elucidate the implications of the functional form assumptions and shed light on the distinctions between models. The behavioral postulates offer simple tools for testing and falsifying the choice procedures used by the decision maker and reveal a close connection between models that are seemingly unrelated.