Abstract
The first aim of this paper is to propose a new axiomatic reconstruction of “random utility” models, a rather more general one compared to the former axiomatization developed by Luce and McFadden. The second aim is to show how the resulting theory could solve at least some of the methodological weaknesses of standard Ordinal Utility and Revealed Preference theories in their deterministic version. No attempt will be made here to deal with “non-standard” behavioural hypotheses; we only want to show that, when standard ones are assumed , observation of aggregate choice and demand patterns can be a more realistic but nonetheless rigorous way to give semantic truth to the axioms of Hicks and Allen’s Ordinal Utility theory (that is, to play the role that can be attributed to Samuelson’s Test on coherence of individual choice).
Chapter PDF
Similar content being viewed by others
Keywords
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
References
Anas, A.: 1982, Residential Location Markets and Urban Transportation, Academic Press, New York.
Bertuglia, C.S.,G. Leonardi, S. Occelli, G.A. Rabino and R. Tadei.: 1984, “Location-Transport Relationships: State-of the-Art, Unifying Efforts and Future Developments.”, IRES, WP 32, Torino.
Daganzo, C: 1979, Multinomial Probit (The Theory and Its Application to Demand Forecasting), Academic Press, New York.
Debreu, G.: 1960, “Review of R.D. Luce (1959).” American Economic Review 50, 186–8.
De Finetti, B.: 1930, “Funzione caratteristica di un fenomeno aleatorio”, in Atti Accademia Nazionale Lincei Rend. (Cl.Sci.Fis.Mat. Nat.) 4, 86–133.
Hicks, J.R.: 1965, A Revision of Demand Theory, Clarendon Press, Oxford.
Leonardi, G.: 1983, “The Use of Random-Utility Theory in Building Location-Allocation Models”, in J.F. Thisse and H.G. Zolled (eds.), Locational Analysis of Public Facilities, North Holland, Amsterdam, pp. 357–383.
Leonardi, G.: 1985, “Equivalenza asintotica tra la teoria delie utilità casuali e la massimizzazione dell’entropia” in A. Reggiani (ed.), Territorio e Trasporti. Modelli matematici per l’Analisi e la Pianificazione, Angeli, Milano.
Luce, R.D.: 1959, Individual Choice Behaviour: A Theoretical Analysis, Wiley, New York.
Thurstone, L.: 1927, “A Law of Comparative Judgment”, Psycological Review 37, 273–286.
Williams, H.C.W.L.: 1977, “On the Formation of Travel Demand Models and Economic Evaluation Measures of User Benefit”, Environnement and Planning A 9, 285–344.
Wong, S.: 1978, The Foundations of P. Samuelson’s Revealed Preference Theory, Routledge & Kegan, London.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 1986 D. Reidel Publishing Company
About this chapter
Cite this chapter
Leonardi, G., Arcangeli, R. (1986). Aggregate Revealed Preferences and Random Utility Theory. In: Daboni, L., Montesano, A., Lines, M. (eds) Recent Developments in the Foundations of Utility and Risk Theory. Theory and Decision Library, vol 47. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-4616-3_15
Download citation
DOI: https://doi.org/10.1007/978-94-009-4616-3_15
Publisher Name: Springer, Dordrecht
Print ISBN: 978-94-010-8551-9
Online ISBN: 978-94-009-4616-3
eBook Packages: Springer Book Archive