Abstract
We develop an extension of Luce's random choice model that incorporates a role for the association of alternatives. Each alternative is characterized by a salience value, a Luce value, and its associated alternatives. The salience value captures the alternative's ability to attract the decision maker's attention, and the Luce value measures the alternative's desirability. The decision maker is first attracted by some alternative according to a salience-based Luce-type formula, and then chooses among its associated alternatives according to another desirability-based Luce-type formula. While retaining the simplicity of the Luce rule, the theory accommodates some well-known behavioral phenomena in individual choice, such as the attraction effect (violations of regularity), and violations of stochastic transitivity.
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