Associative Networks in Decision Making

Jiangtao Li; Rui Tang; Mu Zhang

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arXiv · 2608.09739

Associative Networks in Decision Making

Jiangtao Li·Rui Tang·Mu Zhang

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Abstract

We present a model of associative networks that captures how decision makers expand their consideration set through mental associations between alternatives. Our model provides a tractable approach to study how associations shape choice when some alternatives are available and others are merely observable but unavailable. We characterize the model within a random attention framework and demonstrate unique identification of all parameters. This framework delivers a unified account of several prominent choice anomalies, including classic menu effects and their ``phantom'' counterparts. We illustrate how associative links serve as a strategic variable in applications such as branding, imitation, and platform design.

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Jiangtao Li, Rui Tang, Mu Zhang. 2026-08-10. Associative Networks in Decision Making. https://arxiv.org/abs/2608.09739

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