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The Decision-Conflict Logit

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  • Georgios Gerasimou

Abstract

We introduce the *decision-conflict logit*, a simple and disciplined extension of the logit with an outside option that assigns a menu-dependent utility to that option. The relative value of this utility at a menu could be interpreted as proxying decision difficulty and determines the probability of avoiding/delaying choice at that menu. We focus on two intuitively structured special cases of the model that offer complementary insights, and argue that they explain a variety of observed choice-deferral effects that are caused by hard decisions. We conclude by illustrating the usability of the proposed modelling framework in applications.

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  • Georgios Gerasimou, 2020. "The Decision-Conflict Logit," Papers 2008.04229, arXiv.org, revised Aug 2023.
    • Handle: RePEc:arx:papers:2008.04229
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