Thursday 25 October 2018, 1.00PM to 2.00pm
Speaker(s): John Hey
Abstract: The Random Utility Model (RUM) and the Random Preference Model (RPM) are important tools in the economist’s toolbox when estimating preference functionals from experimental data. In an important recent paper in this journal, Apesteguia and Ballester (2018) cautioned decision theorists against using the RUM, suggesting that the RPM may be preferable. This short note comments on this paper, and concludes that RUM does not suffer from the drawbacks suggested in their paper.
Location: A/EC202 Economics Staff Room
Admission: Staff and PhD Students