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Multinomial logit processes and preference discovery: inside and outside the black box

Title: Multinomial logit processes and preference discovery: inside and outside the black box
Authors: Cerreia-Vioglio, Simone; Maccheroni, Fabio; Marinacci, Massimo; Rustichini, Aldo
Contributors: Cerreia-Vioglio, Simone; Maccheroni, Fabio; Marinacci, Massimo; Rustichini, Aldo
Publication Year: 2023
Collection: Università Commerciale Luigi Bocconi: CINECA IRIS
Subject Terms: DISCRETE CHOICE ANALYSIS; DRIFT DIFFUSION MODEL; HETEROSCEDASTIC EXTREME VALUE MODELS; LUCE MODEL; METROPOLIS ALGORITHM; MULTINOMIAL LOGIT MODEL; QUANTAL RESPONSE EQUILIBRIUM; RATIONAL INATTENTION
Description: We provide two characterizations, one axiomatic and the other neuro-computational, of the dependence of choice probabilities on deadlines, within the widely used softmax representation. Our axiomatic analysis provides a behavioural foundation of softmax (also known as Multinomial Logit Model). Our neuro-computational derivation provides a biologically inspired algorithm that may explain the emergence of softmax in choice behaviour. Jointly, the two approaches provide a thorough understanding of softmaximization in terms of internal causes (neuro-physiological mechanisms) and external effects (testable implications).
Document Type: article in journal/newspaper
File Description: PRINT + ONLINE
Language: English
Relation: info:eu-repo/semantics/altIdentifier/wos/WOS:000853462900001; volume:90; issue:3; firstpage:1155; lastpage:1194; journal:REVIEW OF ECONOMIC STUDIES; https://hdl.handle.net/11565/4052185
DOI: 10.1093/restud/rdac046
DOI: 10.1093/restud/rdac046/6654601
Availability: https://hdl.handle.net/11565/4052185; https://doi.org/10.1093/restud/rdac046; https://academic.oup.com/restud/advance-article/doi/10.1093/restud/rdac046/6654601
Rights: info:eu-repo/semantics/openAccess
Accession Number: edsbas.B518B958
Database: BASE