Discrete choice in continuous time: implications of an intertemporal version of the IIA property

摘要

During the last decades significant progress has been made in developing and applying (static) discrete choice models. Some of these analyses were based on earlier theoretical contributions by Luce (1959), and Luce and Suppes (1965). Specifically, Luce (1959) proposed the axiom known as "Independence from irrelevant Alternatives" (IIA). Although the IIA assumption is strong, and is known not to hold in many choice settings, it nevertheless represents an intuitive and powerful principle of stochastic rationality.