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).
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© 1986 D. Reidel Publishing Company
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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
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DOI: https://doi.org/10.1007/978-94-009-4616-3_15
Publisher Name: Springer, Dordrecht
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