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Published May 2018 | public
Journal Article

The perception-adjusted Luce model


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.

Additional Information

© 2018 Elsevier B.V. Received 21 March 2017, Revised 17 October 2017, Accepted 20 February 2018, Available online 27 February 2018.

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October 18, 2023