The Luce Model, Regularity, and Choice Overload
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arXiv
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| Format: | Preprint |
| Published: |
2025
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| _version_ | 1866909517116080128 |
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| author | Caliari, Daniele Petri, Henrik |
| author_facet | Caliari, Daniele Petri, Henrik |
| contents | We characterize regularity (Block & Marschak, 1960) within a novel stochastic model: the General Threshold Luce model [GTLM]. We apply our results to study choice overload, identified by regularity violations that impose a welfare cost on the decision-maker. Generalizing our characterization results, we identify necessary and sufficient conditions for choice overload within GTLMs and, in doing so, disentangle two well-known causes: low discriminatory power (Frick, 2016) and limited attention (Lleras et al., 2017). |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2502_21063 |
| institution | arXiv |
| publishDate | 2025 |
| record_format | arxiv |
| spellingShingle | The Luce Model, Regularity, and Choice Overload Caliari, Daniele Petri, Henrik Theoretical Economics We characterize regularity (Block & Marschak, 1960) within a novel stochastic model: the General Threshold Luce model [GTLM]. We apply our results to study choice overload, identified by regularity violations that impose a welfare cost on the decision-maker. Generalizing our characterization results, we identify necessary and sufficient conditions for choice overload within GTLMs and, in doing so, disentangle two well-known causes: low discriminatory power (Frick, 2016) and limited attention (Lleras et al., 2017). |
| title | The Luce Model, Regularity, and Choice Overload |
| topic | Theoretical Economics |
| url | https://arxiv.org/abs/2502.21063 |