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TL;DR

This paper provides an axiomatic framework for understanding multi-alternative choice behavior, clarifying model distinctions, and offering tools for testing decision-making processes involving multiple selections.

Contribution

It characterizes various parametric choice models through axioms, revealing their implications and connections, and offers practical tools for empirical testing.

Findings

Axiomatic characterization of multi-alternative choice models

Insights into the implications of functional form assumptions

Tools for testing and falsifying choice procedures

Abstract

This paper studies choice situations in which a decision maker can choose multiple alternatives. Given a menu of available options, the decision maker selects a subset of the menu with certain probabilities. We employ an axiomatic approach to characterize various parametric models in the literature. Our results elucidate the implications of the functional form assumptions and shed light on the distinctions between models. The behavioral postulates offer simple tools for testing and falsifying the choice procedures used by the decision maker and reveal a close connection between models that are seemingly unrelated.