In this paper, we provide an axiomatic foundation for the value-based version of the Drift Diffusion Model (DDM) of Ratcliff (1978), a successful model that describes two-alternative speeded decisions between consumer goods. Our axioms present a test for model misspeciÖcation and connect the externally observable properties of choice with an important neurophysiological account of how choice is internally implemented. We then extend our axiomatic analysis to multi-alternative choice under time pressure. In a nutshell, we show that binary DDM comparisons of the alternatives, paired with Markovian exploration of the consideration set, approximately lead to softmaximization.

A behavioral characterization of the Drift Diffusion Model and its multi-alternative extension for choice under time pressure

Carlo Baldassi;Simone Cerreia Vioglio;Fabio Maccheroni;Massimo Marinacci;Marco Pirazzini
2020-01-01

Abstract

In this paper, we provide an axiomatic foundation for the value-based version of the Drift Diffusion Model (DDM) of Ratcliff (1978), a successful model that describes two-alternative speeded decisions between consumer goods. Our axioms present a test for model misspeciÖcation and connect the externally observable properties of choice with an important neurophysiological account of how choice is internally implemented. We then extend our axiomatic analysis to multi-alternative choice under time pressure. In a nutshell, we show that binary DDM comparisons of the alternatives, paired with Markovian exploration of the consideration set, approximately lead to softmaximization.
2020
2020
Baldassi, Carlo; CERREIA VIOGLIO, Simone; Maccheroni, FABIO ANGELO; Marinacci, Massimo; Pirazzini, Marco
File in questo prodotto:
File Dimensione Formato  
A behavioral characterization of the Drift Diffusion Model.pdf

non disponibili

Tipologia: Documento in Pre-print (Pre-print document)
Licenza: NON PUBBLICO - Accesso privato/ristretto
Dimensione 922.05 kB
Formato Adobe PDF
922.05 kB Adobe PDF   Visualizza/Apri   Richiedi una copia
Maccheroni-Behavioral-Accepted.pdf

non disponibili

Tipologia: Allegato per valutazione Bocconi (Attachment for Bocconi evaluation)
Licenza: NON PUBBLICO - Accesso privato/ristretto
Dimensione 65.53 kB
Formato Adobe PDF
65.53 kB Adobe PDF   Visualizza/Apri   Richiedi una copia

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11565/4023143
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 8
  • ???jsp.display-item.citation.isi??? 9
social impact