Random utility models

 

The derivation of random utility models is based on a specification of the utility as defined by (13). Different assumptions about the random term and the deterministic term will produce specific models. We present here the most usual assumptions that are used in practice. In Section 3.1, common assumptions about the random part of the utility are discussed. The deterministic part is treated in Section 3.2

• Assumptions on the random term
• Assumptions on the deterministic term