The Decision-Conflict and Multicriteria Logit
Papers from arXiv.org
We study two tractable random non-forced choice models that explain behavioural patterns suggesting that the choice-deferral outside option is often selected when people find it hard to decide between the market alternatives available to them, even when these are few and desirable. The *decision-conflict logit* extends the logit model with an outside option by assigning a menu-dependent value to that option. This value captures the degree of complexity/decision difficulty at the relevant menu and allows for the choice probability of the outside option to either increase or decrease when the menu is expanded, depending on *how many* as well as *how attractive* options are added to it. The *multicriteria logit* is a special case of this model and introduces multiple utility functions that jointly predict behaviour in a multiplicative-logit way. Every multicriteria logit admits a simple discrete-choice formulation.
Date: 2020-08, Revised 2020-11
New Economics Papers: this item is included in nep-dcm and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://arxiv.org/pdf/2008.04229 Latest version (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:2008.04229
Access Statistics for this paper
More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().