We study two random choice models that explain behavioural patterns suggesting that the outside option is often chosen by decision makers who find it hard to decide between the otherwise desirable market alternatives available to them. The decision-conflict logit extends the logit model with an...

We model a boundedly rational agent who suffers from limited attention. The agent considers each feasible alternative with a given (unobservable) probability,the attention parameter, and then chooses the alternative that maximises a preference relation within the set of considered alternatives....

We study a psychologically based foundation for choice errors. The decision maker applies a preference ranking after forming a ?consideration set?prior to choosing an alternative. Membership of the consideration set is determined both by the alternative speci?c salience and by the rationality of...