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Associative networks in decision making

Author

Listed:
  • Li, Jiangtao

    (Singapore Management University)

  • Tang, Rui

    (Department of Economics, Hong Kong University of Science and Technology)

  • Zhang, Mu

    (Department of Economics, University of Michigan)

Abstract

We present a model of associative networks that captures how a decision maker expands her consideration set through mental associations between alternatives. This model serves as a tool to understand the influence of association on decision making. As a proof of concept, we characterize this model within a random attention framework and demonstrate that all the relevant parameters are uniquely identifiable. Notably, in a novel choice domain where not all observable alternatives are available, the presence of unavailable alternatives can affect the choice frequencies of other alternatives through association.

Suggested Citation

  • Li, Jiangtao & Tang, Rui & Zhang, Mu, 2024. "Associative networks in decision making," Economics and Statistics Working Papers 9-2024, Singapore Management University, School of Economics.
    • Handle: RePEc:ris:smuesw:2024_009
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    More about this item

    Keywords

    associative network; random attention; consideration set; random choice; availability and observability;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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