‘REGULAR’ CHOICE AND THE WEAK AXIOM OFSTOCHASTIC REVEALED PREFERENCE

We explore the relation between two 'rationality conditions' for stochastic choicebehaviour: regularity and the weak axiom of stochastic revealed preference (WASRP). We show thatWASRP implies regularity, but the converse is not true. We identify a restriction on the domain ofthe stochastic choice function, which suffices for regularity to imply WASRP. When the universal setof alternatives is finite, this restriction is also necessary for regularity to imply WASRP. Furthermore,we identify necessary and sufficient domain restrictions for regularity to imply WASRP, when theuniversal set of alternatives is finite and stochastic choice functions are all degenerate...