Sequential Sampling Models of Choice: Some Recent Advances

Marketing Letters; July 2008, Vol. 19, Issue 3/4, pp. 255-267, 13p, 1 Chart

22 Pages Posted: 26 Sep 2012 Last revised: 27 Sep 2012

See all articles by Thomas Otter

Thomas Otter

Goethe University Frankfurt - Department of Marketing

joe johnson

affiliation not provided to SSRN

Joerg Rieskamp

University of Basel

Greg M. Allenby

Ohio State University (OSU) - Department of Marketing and Logistics

Jeff D. Brazell

The Modellers, LLC

Adele Diederich

affiliation not provided to SSRN

J. Wesley Hutchinson

University of Pennsylvania - Marketing Department

Steven N. MacEachern

Ohio State University (OSU)

Shiling Ruan

Ohio State University (OSU)

James T. Townsen

Indiana University Bloomington - Department of Psychology

Date Written: July 1, 2008

Abstract

Choice models in marketing and economics are generally derived without specifying the underlying cognitive process of decision making. This approach has been successfully used to predict choice behavior. However, it has not much to say about such aspects of decision making as deliberation, attention, conflict, and cognitive limitations and how these influence choices. In contrast, sequential sampling models developed in cognitive psychology explain observed choices based on assumptions about cognitive processes that return the observed choice as the terminal state. We illustrate three advantages of this perspective. First, making explicit assumptions about underlying cognitive processes results in measures of deliberation, attention, conflict, and cognitive limitation. Second, the mathematical representations of underlying cognitive processes imply well documented departures from Luce’s Choice Axiom such as the similarity, compromise, and attraction effects. Third, the process perspective predicts response time and thus allows for inference based on observed choices and response times. Finally, we briefly discuss the relationship between these cognitive models and rules for statistically optimal decisions in sequential designs.

Keywords: Choice models, Diffusion models, Human information processing, Likelihood based inference, Luce’s Axiom, Race models, Response time

Suggested Citation

Otter, Thomas and johnson, joe and Rieskamp, Joerg and Allenby, Greg M. and Brazell, Jeff D. and Diederich, Adele and Hutchinson, John Wesley and MacEachern, Steven N. and Ruan, Shiling and Townsen, James T., Sequential Sampling Models of Choice: Some Recent Advances (July 1, 2008). Marketing Letters; July 2008, Vol. 19, Issue 3/4, pp. 255-267, 13p, 1 Chart. Available at SSRN: https://ssrn.com/abstract=1605206

Thomas Otter (Contact Author)

Goethe University Frankfurt - Department of Marketing ( email )

Frankfurt
Germany
++49.69.798.34646 (Phone)

HOME PAGE: http://www.marketing.uni-frankfurt.de/index.php?id=97?&L=1

Joe Johnson

affiliation not provided to SSRN ( email )

Joerg Rieskamp

University of Basel ( email )

Petersplatz 1
Basel, CH-4003
Switzerland

Greg M. Allenby

Ohio State University (OSU) - Department of Marketing and Logistics ( email )

Fisher Hall 524
2100 Neil Ave
Columbus, OH 43210
United States

Jeff D. Brazell

The Modellers, LLC ( email )

6995 Union Park Center
Ste 300
Salt Lake City, UT 84047
United States
8018846688 (Phone)

HOME PAGE: http://www.themodellers.com

Adele Diederich

affiliation not provided to SSRN ( email )

John Wesley Hutchinson

University of Pennsylvania - Marketing Department ( email )

700 Jon M. Huntsman Hall
3730 Walnut Street
Philadelphia, PA 19104-6340
United States

Steven N. MacEachern

Ohio State University (OSU) ( email )

Blankenship Hall-2010
901 Woody Hayes Drive
Columbus, OH OH 43210
United States

Shiling Ruan

Ohio State University (OSU) ( email )

Blankenship Hall-2010
901 Woody Hayes Drive
Columbus, OH OH 43210
United States

James T. Townsen

Indiana University Bloomington - Department of Psychology ( email )

Bloomington, IN 47405
United States
(812) 855-9598 (Phone)

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