Published November 2019 | Version public
Journal Article

General Luce model

Abstract

We extend the Luce model of discrete choice theory to satisfactorily handle zero-probability choices. The Luce mode struggles to explain choices that are not made. The model requires that if an alternative y is never chosen when x is available, then there is no set of alternatives from which y is chosen with positive probability. In our model, if an alternative y is never chosen when x is available, then we infer that y is dominated by x. While dominated by x, y may still be chosen with positive probability, when grouped with a comparable set of alternatives.

Additional Information

© 2018 pringer-Verlag GmbH Germany, part of Springer Nature. First Online: 01 September 2018. Echenique thanks the National Science Foundation for its support through the Grants SES 1558757 and CNS-1518941. Saito thanks the National Science Foundation for its support through the Grant SES 1558757.

Additional details

Identifiers

Eprint ID
99848
Resolver ID
CaltechAUTHORS:20191114-143959789

Funding

NSF
SES-1558757
NSF
CNS-1518941

Dates

Created
2019-11-14
Created from EPrint's datestamp field
Updated
2021-11-16
Created from EPrint's last_modified field