@article {edsrep.dp55420100101,
	title = {Limits on Individual Choice.},
	journal = {Discussion Paper Series},
	year = {2010},
	abstract = {Individuals behave with choice probabilities defined by a multinomial logit (MNL) probability distribution over a finite number of alternatives which includes utilities as parameters. The salient feature of the model is that probabilities depend on the choice-set, or domain. Expanding the choice-set decreases the probabilities of alternatives included in the original set, providing positive probabilities to the added alternatives. The wider probability {\textquoteright}spread{\textquoteright} causes some individuals to fur- ther deviate from their higher valued alternatives, while others find the added alternatives highly valuable. For a population with diverse preferences, there ex- ists a subset of alternatives, called the optimum choice-set, which balances these considerations to maximize social welfare. The paper analyses the dependence of the optimum choice-set on a parameter which specifies the precision of individuals{\textquoteright} choice ({\textquoteright}degree of rationality{\textquoteright}). It is proved that for high values of this parame- ter the},
	url = {http://search.ebscohost.com/login.aspx?direct=true\&db=edsrep\&AN=edsrep.dp554\&site=eds-live},
	author = {Eytan, Sheshinski}
}
