Harmonic choice model

Pavlo R. Blavatskyy ()
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Pavlo R. Blavatskyy: Montpellier Business School

Theory and Decision, 2024, vol. 96, issue 1, No 3, 49-69

Abstract: Abstract For decades, discrete choice modelling was practically dominated by only two models: multinomial probit and logit. This paper presents a novel alternative—harmonic choice model. It is qualitatively similar to multinomial probit and logit: if one choice alternative greatly exceeds all (falls below at least one of) other alternatives in terms of utility then it is chosen with probability close to one (zero). Compared to probit and logit, the new model has relatively flat tails and it is steeper in the neighborhood of zero (when all alternatives yield the same utility and the decision maker chooses among them at random).

Keywords: Probabilistic choice; Independence from irrelevant alternatives; Luce choice model; Fechner model of random errors; Odds ratio (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s11238-023-09939-7

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