The Luce Model, Regularity, and Choice Overload

Daniele Caliari; Henrik Petri

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arXiv · 2502.21063

The Luce Model, Regularity, and Choice Overload

Daniele Caliari·Henrik Petri

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Abstract

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).

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Daniele Caliari, Henrik Petri. 2025-02-28. The Luce Model, Regularity, and Choice Overload. https://arxiv.org/abs/2502.21063

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