Context Dependence and Aggregation in Disaggregate Choice Analysis

Abstract

There is an emerging consensus among disciplines dealing with human decision making that the context in which a decision is made is an important determinant of outcomes. This consensus has been slow in the making because much of what is known about context effects has evolved from a desire to demonstrate the untenability of certain common assumptions upon which tractable models of behavior have generally been built. This paper seeks to␣bring disparate disciplinary perspectives to bear on the relation between context and choice, to formulate (1) recommendations for improvements to the state-of-the-practice of Random Utility Models (RUMs) of choice behavior, and (2) a future research agenda to guide the further incorporation of context into these models of choice behavior.