arXiv 10 Aug 2020 · Theoretical Economics
arXiv:2008.04229 · PDF · DOI · OpenAlex · Extracted main text
Decision makers often opt for the deferral outside option when they find it difficult to make an active choice. Contrary to existing logit models with an outside option where the latter is assigned a fixed value exogenously, this paper introduces and analyzes a class of logit models where that option's value is menu-dependent, may be determined endogenously, and could be interpreted as proxying the varying dgree of decision difficulty at different menus. We focus on the *power logit* special class of these models. We show that these predict some observed choice-deferral effects that are caused by hard decisions, including non-monotonic "roller-coaster" choice-overload phenomena that are regulated by the presence or absence of a clearly dominant feasible alternative. We illustrate the usability, novel insights and explanatory gains of the proposed framework for empirical discrete choice analysis and theoretical modelling of imperfectly competitive markets in the presence of potentially indecisive consumers.
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The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.
| Reference | Intensity | Mentions | Sections | Main text | |
|---|---|---|---|---|---|
| 1 | Bhatia, Sudeep, Mullett, Timothy L (2016) The Dynamics of Deferred Decision | 1.000 | 6 | 3 | 100% |
| 2 | Hensher, David A., Rose, John M., Greene, William H (2015) Applied Choice Analysis | 1.000 | 5 | 4 | 100% |
| 3 | McFadden, Daniel, Zarembka, P (1973) Conditional Logit Analysis of Qualitative Choice Behavior | 0.941 | 6 | 3 | 83% |
| 4 | Anderson, Simon P., Palma, Jacques-Francois (1992) Discrete Choice Theory of Product Differentiation | 0.843 | 3 | 3 | 100% |
| 5 | Dhar, Ravi (1997) Consumer Preference for a No-Choice Option | 0.811 | 4 | 2 | 100% |
| 6 | Costa-Gomes, Miguel, Cueva, Carlos, Gerasimou, Georgios (2022) Choice, Deferral and Consistency self | 0.644 | 2 | 2 | 100% |
| 7 | Knops, Anouk M., Ubbink, Dirk T., Legemate, Dink A., Stalpers, Lukas… (2013) Interpreting Patient Decisional Conflict Scores: Behavior and Emotions in Decisions about Treatment | 0.644 | 2 | 2 | 100% |
| 8 | Luce, R. Duncan (1959) Individual Choice Behavior: A Theoretical Analysis | 0.644 | 2 | 2 | 100% |
| 9 | Redelmeier, D. A., Shafir, E (1995) Medical Decision Making in Situations that Offer Multiple Alternatives | 0.644 | 2 | 2 | 100% |
| 10 | Tversky, Amos, Shafir, Eldar (1992) Choice under Conflict: The Dynamics of Deferred Decision | 0.644 | 2 | 2 | 100% |
Showing the top 10 of 58 scored citations.