Multistability of impact, utility and threshold concepts of binary choice models

K. Ostasiewicz, M.H. Tyc, A. Radosz, P. Magnuszewski, P. Goliczewski, P. Hetman and J. Sendzimir

Physica A: Statistical Mechanics and its Applications, 2008, vol. 387, issue 25, 6337-6352

Abstract: The decision making problem in the context of binary choice is considered by means of impact function, utility function and threshold model approaches. The properties of generalized impact function and utility function are examined; it is shown that these two approaches are equivalent. Their relation to the threshold model is studied and the correspondence between respective cumulative distribution functions is displayed. The stationary state corresponding to the thermodynamic equilibrium is determined within mean field approximation. Multistability of the stationary state is expressed in terms of the distribution function of the random variable of impact/utility function. The correspondence with statistical physics predictions for Ising model is discussed: logistic distribution leads to the mean-field result, i.e. Curie–Weiss approximation. Variations of the distribution functions and/or other model parameters, of social character, self-support, nonlinearity of social interactions, etc., would break the direct correspondence to statistical physics of Ising model, leading in particular cases to richer structure of the multistability.

Keywords: Binary choice model; Impact function; Utility function (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:387:y:2008:i:25:p:6337-6352

DOI: 10.1016/j.physa.2008.08.006

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