A Conditional Probability Hierarchy for Stochastic Choice
Abstract
We introduce point conditional probability spaces (PCPSs) as primitive building blocks for stochastic choice. This concept goes back to Rényi (1955), who proposed conditional probability spaces (CPSs) as a basis for probability theory. Luce (1959) noted the connection between CPSs and stochastic choice, and Cerreia-Vioglio et al. (2021) have developed the connection further. A PCPS is a CPS each of whose component probability measures concentrates on a singleton selection. We build a four-level PCPS-based hierarchy of families of stochastic choice rules. Level 1 consists of PCPSs, Level 2 is made up of finitely additive "conditionally consistent" mixtures of PCPSs, Level 3 comprises all finitely additive probabilistic mixtures of PCPSs, and Level 4 consists of all finitely additive signed probabilistic mixtures of PCPSs. We construct our hierarchy at a general measure-theoretic level that encompasses infinite choice sets. We also connect each level of our hierarchy to well-known axioms for stochastic choice, namely, the Weak Axiom of Stochastic Revealed Preference, Independence of Irrelevant Alternatives, and no Dutch book. We establish the relationship between total orders and PCPSs and demonstrate a sense in which PCPSs can be a more parsimonious representation of choice.
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BibTeX
@misc{yang2026conditional,
title = {{A Conditional Probability Hierarchy for Stochastic Choice}},
author = {Erya Yang and Adam Brandenburger},
howpublished = {arXiv},
year = {2026},
month = sep,
doi = {10.48550/arxiv.2607.19511},
eprint = {2607.19511},
archivePrefix = {arXiv},
url = {https://arxiv.org/abs/2607.19511},
}
RIS
TY - UNPB
TI - A Conditional Probability Hierarchy for Stochastic Choice
AU - Erya Yang
AU - Adam Brandenburger
PY - 2026
DA - 2026/09/29
PB - arXiv
DO - 10.48550/arxiv.2607.19511
UR - https://arxiv.org/abs/2607.19511
AB - We introduce point conditional probability spaces (PCPSs) as primitive building blocks for stochastic choice. This concept goes back to Rényi (1955), who proposed conditional probability spaces (CPSs) as a basis for probability theory. Luce (1959) noted the connection between CPSs and stochastic choice, and Cerreia-Vioglio et al. (2021) have developed the connection further. A PCPS is a CPS each of whose component probability measures concentrates on a singleton selection. We build a four-level PCPS-based hierarchy of families of stochastic choice rules. Level 1 consists of PCPSs, Level 2 is made up of finitely additive "conditionally consistent" mixtures of PCPSs, Level 3 comprises all finitely additive probabilistic mixtures of PCPSs, and Level 4 consists of all finitely additive signed probabilistic mixtures of PCPSs. We construct our hierarchy at a general measure-theoretic level that encompasses infinite choice sets. We also connect each level of our hierarchy to well-known axioms for stochastic choice, namely, the Weak Axiom of Stochastic Revealed Preference, Independence of Irrelevant Alternatives, and no Dutch book. We establish the relationship between total orders and PCPSs and demonstrate a sense in which PCPSs can be a more parsimonious representation of choice.
ER -