Non-Additive Random Utility Functions

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Abstract:

This paper studies random choice rules over finite sets that obey regularity but potentially fail to satisfy all of the Block-Marschak inequalities. Such random choice rules can be represented by non-additive random utility functions: that is, by capacities on the space of preferences. The higher-order Block-Marschak inequalities are shown to be related to the degree of monotonicity that can be achieved by a capacity representation. These results help to decipher the Block-Marschak inequalities, and are applied to study the relationship between random choice over finite sets and random choice over lotteries. 

Last updated on 06/02/2015