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:	2009-09
Authors:	Blavatskyy, Pavlo R.
Institutions:	Institut für Volkswirtschaftslehre, Wirtschaftswissenschaftliche Fakutät
Subject:	Probabilistic choice \| binary choice \| multiple alternatives

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Extent:	application/pdf
Series:	IEW - Working Papers. - ISSN 1424-0459.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series IEW-working papers Number 426
Classification:	C44 - Statistical Decision Theory; Operations Research ; D11 - Consumer Economics: Theory ; D70 - Analysis of Collective Decision-Making. General ; D81 - Criteria for Decision-Making under Risk and Uncertainty
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005064216