Abstract
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 outside option by assigning a menu-dependent value to that option that allows for its choice probability to either increase or decrease when the menu is expanded, depending on which as well as on how many alternatives are added to it. The multicriteria logit is a special case of this model that introduces multiple utility functions which jointly predict behaviour in a novel multiplicative-logit way. This special case admits a general discrete-choice formulation.
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