Stochastic rationality and Möbius inverse ∗

@inproceedings{Billot2002StochasticRA,
  title={Stochastic rationality and M{\"o}bius inverse ∗},
  author={Antoine Billot and Jacques-François Thisse},
  year={2002}
}
Discrete choice theory is very much dominated by the paradigm of the maximization of a random utility, thus implying that the probability of choosing an alternative in a given set is equal to the sum of the probabilities of all the rankings for which this alternative comes first. This property is called stochastic rationality. In turn, the choice… CONTINUE READING