A characterization of the Luce choice rule for an arbitrary collection of menus

A-Tier
Journal: Journal of Economic Theory
Year: 2025
Volume: 223
Issue: C

Authors (2)

Alós-Ferrer, Carlos (Lancaster University) Mihm, Maximilian (not in RePEc)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The Luce Choice Rule (or, equivalently, the multinomial logit model) is extensively used in economics and other fields. Classical characterizations rest on Luce's Choice Axiom, when all choice sets are available, and Luce's Product Rule in the case of binary choice. Yet, actual datasets typically consist neither of all choice sets nor all binary choice sets. We provide a characterization for the general case, allowing also for zero choice probabilities. Building upon this characterization, we derive implications for experimental design in terms of three criteria: falsification, identification, and prediction.

Technical Details

RePEc Handle
repec:eee:jetheo:v:223:y:2025:i:c:s0022053124001479
Journal Field
Theory
Author Count
2
Added to Database
2026-01-24