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We study the repeated choice interpretation of stochastic choice and the individual interpretation of the random utility model. We consider a myopic agent whose distribution over preferences tomorrow potentially depends on their consumption and preference today. Even when the agent is classically rational in each of their static decisions, there are forms of consumption dependence which are inconsistent with random utility as a model of intertemporal aggregation. We offer two characterizations of Markovian consumption dependence which are consistent with random utility. Further, we characterize the behavioral content of consumption dependence in a two period stochastic choice model.

In a decision problem comprised of multiple choices, a person may fail to take into account the interdependencies between her choices. To understand how people make
decisions in such problems, we design a novel experiment and revealed preference tests that determine how each subject brackets her choices. In separate portfolio allocation under risk, social allocation, and induced payoff function shopping experiments, we find that 40-43%
of our subjects are consistent with narrow bracketing while only 0-15% are consistent with broad bracketing. Classifying subjects while adjusting for models’ predictive precision, 74% of subjects are best described by narrow bracketing, 13% by broad bracketing, and 6% by intermediate cases.

We study intertemporal choice through a novel and flexible framework that accounts for savoring of future consumption and memories of past consumption. The model uses standard intertemporal budget constraints (Samuelson, 1937) but enriches preference structures with instant utility (Kahneman et al., 1997) from anticipation, remembering, and experience. We provide a revealed preference characterization and show that our model has testable implications in standard budget surveys. We apply our characterization to quarterly consumption data from Spanish households. Utility from anticipation is important to understand consumption patterns. We pursue two further investigations into preferences for improvement and the length of planning periods.

This paper characterizes the logit model with menu dependent variance. The characterization follows from two conditions: independent log-odds and log-odds monotonicity. Independent log-odds says the change to log-odds across different menus is independent of the alternatives used to compare log-odds. Log-odds monotonicity requires a higher value alternative is not chosen less than a lower value alternative in different menus. We show how the logit model with menu dependent variance relates to the class of perturbed utility models.