The perception-adjusted Luce model

Federico Echenique, Kota Saito and Gerelt Tserenjigmid ()

Mathematical Social Sciences, 2018, vol. 93, issue C, 67-76

Abstract: We develop an axiomatic theory of random choice that builds on Luce’s (1959) model to incorporate a role for perception. We capture the role of perception through perception priorities; priorities that determine whether an object or alternative is perceived sooner or later than other alternatives. We identify agents’ perception priorities from their violations of Luce’s axiom of independence from irrelevant alternatives (IIA). The direction of the violation of IIA implies an orientation of agents’ priority rankings. We adjust choice probabilities to account for the effects of perception, and impose that adjusted choice probabilities satisfy IIA. So all violations of IIA are accounted for by the perception order. The theory can explain some very well-documented behavioral phenomena in individual choice.

Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (29)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165489618300167
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:matsoc:v:93:y:2018:i:c:p:67-76

DOI: 10.1016/j.mathsocsci.2018.02.004

Access Statistics for this article

Mathematical Social Sciences is currently edited by J.-F. Laslier

More articles in Mathematical Social Sciences from Elsevier
Bibliographic data for series maintained by Catherine Liu ().