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The perception-adjusted Luce model

Echenique, Federico and Saito, Kota and Tserenjigmid, Gerelt (2018) The perception-adjusted Luce model. Mathematical Social Sciences, 93 . pp. 67-76. ISSN 0165-4896.

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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.

Item Type:Article
Related URLs:
URLURL TypeDescription ItemWorking Paper
Echenique, Federico0000-0002-1567-6770
Saito, Kota0000-0003-1189-8912
Tserenjigmid, Gerelt0000-0003-1412-9692
Additional Information:© 2018 Elsevier B.V. Received 21 March 2017, Revised 17 October 2017, Accepted 20 February 2018, Available online 27 February 2018.
Record Number:CaltechAUTHORS:20180228-092329391
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Official Citation:Federico Echenique, Kota Saito, Gerelt Tserenjigmid, The perception-adjusted Luce model, Mathematical Social Sciences, Volume 93, 2018, Pages 67-76, ISSN 0165-4896, (
Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:84993
Deposited By: Tony Diaz
Deposited On:28 Feb 2018 17:34
Last Modified:29 Mar 2018 23:05

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