How to Extend a Model of Probabilistic Choice from Binary Choices to Choices Among More than Two Alternatives
Institute for Empirical Research in Economics University of Zurich Working Paper Series
10 Pages Posted: 4 Sep 2009
Date Written: September 3, 2009
Abstract
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.
Keywords: probabilistic choice, binary choice, multiple alternatives
JEL Classification: C44, D11, D7, D81
Suggested Citation: Suggested Citation
Blavatskyy, Pavlo R., How to Extend a Model of Probabilistic Choice from Binary Choices to Choices Among More than Two Alternatives (September 3, 2009). Institute for Empirical Research in Economics University of Zurich Working Paper Series, Available at SSRN: https://ssrn.com/abstract=1467605 or http://dx.doi.org/10.2139/ssrn.1467605
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