Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7372752 | Mathematical Social Sciences | 2018 | 10 Pages |
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.
Related Topics
Physical Sciences and Engineering
Mathematics
Applied Mathematics
Authors
Federico Echenique, Kota Saito, Gerelt Tserenjigmid,