The Luce model with replicas

José Heleno Faro

Journal of Economic Theory, 2023, vol. 208, issue C

Abstract: We propose the notion of replicas in the context of discrete choices and introduce axioms that characterize the Luce model with replicas. This model does not fall prey to the well-known “red bus-blue bus” example originally proposed by Debreu (1960) and later made famous by McFadden. Our model satisfies regularity, strong stochastic transitivity, and is a random utility model. Due to its simplicity, this model is more parsimonious than others aimed at overcoming the “duplicates problem”.

Keywords: Luce's model; Stochastic choice; Replicas; Duplicates problem; Similarity effect (search for similar items in EconPapers)
JEL-codes: D81 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:208:y:2023:i:c:s0022053122001867

DOI: 10.1016/j.jet.2022.105596

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