Multinomial logit is the canonical model of discrete choice but widely criticized for requiring functional form … assumptions as foundation. The present paper shows that logit is behaviorally founded without such assumptions. Logit …\'s functional form obtains if relative choice probabilities are independent of irrelevant alternatives and invariant to utility …

Theory. The second is the Relative Utility Function, which strongly resembles the utility function hypothesized by Markowitz … (1952). It is shown that the relative utility model follows Expected Utility Theory with a transformed outcome domain. An … quantile (including median) regression estimations are presented for the relative utility model. It turns out that the …

consumption have direct utility-consequences. This gives rise to informational preferences, i.e., preferences over the timing and …

consumption have direct utility consequences. This gives rise to informational preferences, i.e., preferences over the timing and …

consumption have direct utility-consequences. This gives rise to informational preferences, i.e., preferences over the timing and …

-parameter generalization of expected utility theory. The proposed theory assumes that a decision maker: 1) behaves as if maximizing expected …This paper presents a new decision theory for modelling choice under risk. The new theory is a two … utility; but 2) may experience disappointment (elation) when the utility of a lottery's outcome falls short of (exceeds) the …

. Decision Utility Theory presents an alternative solution, which makes no use of this concept. The new theory distinguishes … decision and perception utility, postulates a double S-shaped decision utility curve similar to one hypothesized by Markowitz … (1952), and applies the expected decision utility value similarly to the theory by von Neumann and Morgenstern (1944 …