Law of Demand and Forced Choice
Number: 593
Year: 2016
Author(s): S. Cerreia-Vioglio, F. Maccheroni, M. Marinacci, and A. Rustichini
We characterize consistent random choice rules in terms of the optimality of the support. We then proceed to study stochastic choice in a consumer theory setting. We prove a law of demand for stochastic choice. We then move to a temporal setting where we characterize the softmax decision criterion.