The Focal Luce Model

• 成果类型: Article
• 署名作者: Kovach, Matthew; Tserenjigmid, Gerelt
• 署名单位: Virginia Polytechnic Institute & State University; University of California System; University of California Santa Cruz
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MICROECONOMICS
• ISSN/ISSBN: 1945-7669
• DOI: 10.1257/mic.20200111
• 发表日期: 2022
• 页码: 378-413
• 关键词: Stochastic choice; INFORMATION; attraction; context; search

摘要

We introduce the Focal Luce Model (FLM), a random choice model that generalizes Luce's (1959) model (multinomial logit) to account for menu-dependent focality of alternatives. In the FLM, focal alter-natives are relatively more likely to be chosen even after taking utili-ties into account. The FLM captures a variety of bounded rationality models while behaviorally distinguishing between what is focal and the magnitude of the bias from focality. We show how to identify util-ities, focal sets, and bias terms from choice frequencies; behaviorally characterize the FLM by weakening Luce's (1959) independence from irrelevant alternatives; and apply our model to choice data and games. (JEL C70, D11, D91)