Publications

  1. Binary single-crossing random utility models, Games and Economic Behavior, March 2023 (Link to publication here) (PDF).
  2. Mixture Choice Data: Revealing Preferences and Cognition, Journal of Political Economy, March 2023 (with Valentino Dardanoni, Paola Manzini, Marco Mariotti and Chris Tyson))(Link to publication here) (PDF).
  3. Lexicographic probabilities and robustness, Games and Economic Behavior, July 2020 (Link to publication here).
  4. Corrigendum to “Dual random utility maximisation", Journal of Economic Theory, November 2019 (with Paola Manzini and Marco Mariotti) (Link to publication here).
  5. Asymptotic properties of welfare relations, Economic Theory, June 2019 (Link to publication here).
  6. No Bullying! A playful proof of Brouwer's fixed-point theorem, Journal of Mathematical Economics, October 2018 (with Mark Voorneveld) (Link to publication here).
  7. A "three-sentence proof" of Hansson's theorem, Economic Theory Bulletin, April 2018 (Link to publication here).
  8. Characterizing lexicographic preferences, Journal of Mathematical Economics, March 2016 (with Mark Voorneveld) (Link to publication here).

Working Papers

Irrational Random Utility Models (with Daniele Caliari) (PDF) (This version: March 2024)

Abstract: We show that the set of aggregate choices of a population of rational decision-makers - random utility models (RUMs) - can be represented by a population of irrational ones if, and only if, their preferences are sufficiently uncorrelated. We call this representation: Irrational RUM. We then show that almost all RUMs can be represented by a population in which at least some decision-makers are irrational and that under specific conditions their irrational behavior is unconstrained.

Characterizing ordered models of behavioral heterogeneity (PDF) (This version: January 2024)

Abstract: The primary objective of the present paper is to demonstrate the applicability of some recent theories of ordered random choice in describing heterogenous choice behaviors. Within the ordered framework, we establish a link between aggregate and individual choice. This link allows us to characterize a wide range of ordered models of behavioral heterogeneity by leveraging on existing characterizations of individual (deterministic) choice. We also show that our results straightforwardly extend to infinite choice spaces enabling applications to choice under risk and uncertainty (expected utility).

Multivalued Logit: Revealing bundle utility from choice (PDF) (This version: March 2024)

Abstract: We introduce a logit type model of bundle choice that allows for complementarities between alternatives. A utility-value is assigned to each bundle of alternatives. The probability of choosing a bundle is proportional to the utility-value assigned to it. The data available to the researcher is in the form of product-level market shares, i.e. a marginal distribution. We characterize the model and show that its underlying parameters are unique (up to multiplication by a scalar). An implication of uniqueness is that any complementarities between alternatives can be revealed from data.

Random (sequential) multivalued choice (PDF) (This version: July 2022)

Abstract: Multivalued choice rules, or choice correspondences, are effective means to describe a wide array of behaviors conforming to and deviating from rationality. Modeling heterogeneity in such behaviors is problematic as it gives rise to serious identification issues. We introduce a model of stochastic choice that is general enough to explain a high degree of heterogeneity in multivalued choice, yet with good identification properties. We provide two main applications. First, we study satisficing behavior in the spirit of Simon (1955). Second, we introduce a dynamic version of our model and use it to study long run behavior of individuals.

Stochastic choice analysis with mismeasured data (PDF,Online appendix) (This version: November 2021)

Abstract: Measurement error is an important concern in empirical and experimental work on discrete choice. Ignoring it may lead to an (under) over rejection problem, whereby observed choices appear (in)consistent with a theory of choice due to measurement error rather than underlying choice behavior. Our results are twofold. On the one hand, we show that there are several models of choice that are immune/robust to "small" amounts of measurement error and hence not as exposed to the over/under rejection problem. On the other hand, we identify models that are sensitive to such issues. We discuss methods to study these models and to alleviate the issues of over/under rejection.

LBO Financing (with Mike Burkart and Samuel Lee) (PDF) (This version: September 2020)

Abstract: We analyze takeover financing in a model where bidders must overcome the free-rider problem to restore ownership incentives. Bootstrapping, “excessive” debt levels, and negative financing contributions by bidders—the controversial traits of leveraged buyouts—emerge as the Pareto efficient takeover bid design. Takeover debt is crucial to equity consolidation, Pareto sharing of the incentive gains, and efficient takeover competition, all while wealth constraints are slack. These benefits are unique to the market for corporate control, that is, absent outside of takeovers.

Lexicographic Majority (PDF) (This version: July 2023)

Abstract: This paper explores a relationship between lexicographic and majority preferences as a novel explanation of preference cycles in choice. Already May (1954) notes that, among subjects in his experiment who did not display a (majority) preference cycle, a vast majority ordered alternatives according to an attribute that they found overridingly important, suggesting that a lexicographic heuristic was used. Our model, Lexicographic Majority, reconciles these findings by providing a unified framework for lexicographic and simple majority preferences. We justify lexicographic majority preferences by providing an axiomatization in terms of behavioral properties.