How to extend a model of probabilistic choice from binary choices to choices among more than two alternatives

This note presents an algorithm that extends a binary choice model to choice among multiple alternatives. Both neoclassical microeconomic theory and Luce choice model are consistent with the proposed algorithm. The algorithm is compatible with several empirical findings (asymmetric dominance and attraction effects) that cannot be explained within standard models.

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Year of publication:	2009
Authors:	Blavatskyy, Pavlo R.
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 105.2009, 3, p. 330-332
Publisher:	Elsevier
Keywords:	Probabilistic choice Binary choice Multiple alternatives

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008474044