We compare the random preference, Fechner, and constant error (or "tremble") approaches to the stochastic modelling of choice under risk. Various combinations of these approaches are used with expected utility and rank-dependent theory to generate a set of econometric models. These are estimated...

We compare the random preference, Fechner, and constant error (or "tremble") approaches to the stochastic modelling of choice under risk. Various combinations of these approaches are used with expected utility and rank-dependent theory to generate a set of econometric models. These are estimated...

A theory is proposed in which preferences are conditional on reference points. Preferences conditional on any given reference point satisfy the usual assumptions of cunsumer theory. Apart from a continuity condition, the only additional restriction is to rule out cycles of pairwise choice. The...