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A reconciliation between cosine similarity and Euclidean distance in individual decision-making problems

Author

Listed:
  • Saptarshi Mukherjee

    (Indian Institute of Technology Delhi)

  • Ruhi Sonal

    (Indraprastha Institute of Information Technology Delhi)

Abstract

Although both Euclidean distance and cosine similarity are widely used as measures of similarity, there is a lack of clarity as to which one is a better measure in applications such as machine learning exercises and in modeling consumer behavior. In this note we establish a reconciliation between these two approaches in an individual decision-making problem with a reference point.

Suggested Citation

  • Saptarshi Mukherjee & Ruhi Sonal, 2023. "A reconciliation between cosine similarity and Euclidean distance in individual decision-making problems," Indian Economic Review, Springer, vol. 58(2), pages 427-431, December.
    • Handle: RePEc:spr:inecre:v:58:y:2023:i:2:d:10.1007_s41775-023-00206-8
    DOI: 10.1007/s41775-023-00206-8
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    References listed on IDEAS

    as
    1. Simonson, Itamar, 1989. "Choice Based on Reasons: The Case of Attraction and Compromise Effects," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 16(2), pages 158-174, September.
    2. Klaus Nehring & Clemens Puppe, 2002. "A Theory of Diversity," Econometrica, Econometric Society, vol. 70(3), pages 1155-1198, May.
    3. Paulo Natenzon, 2019. "Random Choice and Learning," Journal of Political Economy, University of Chicago Press, vol. 127(1), pages 419-457.
    4. Huber, Joel & Payne, John W & Puto, Christopher, 1982. "Adding Asymmetrically Dominated Alternatives: Violations of Regularity and the Similarity Hypothesis," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 9(1), pages 90-98, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Choice; Cosine similarity; Euclidean distance;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling

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