dorsal/arxiv
View SchemaIntegrating economic and psychological insights in binary choice models with social interactions
| Authors | Katarzyna Ostasiewicz, Michal H. Tyc, Piotr Goliczewski, Piotr Magnuszewski, Andrzej Radosz, Jan Sendzimir |
|---|---|
| Categories | |
| ArXiv ID | physics/0609170 |
| URL | https://arxiv.org/abs/physics/0609170 |
Abstract
We investigate a class of binary choice models with social interactions. We propose a unifying perspective that integrates economic models using a utility function and psychological models using an impact function. A general approach for analyzing the equilibrium structure of these models within mean-field approximation is developed. It is shown that within a mean-field approach both the utility function and the impact function models are equivalent to threshold models. The interplay between heterogeneity and randomness in model formulation is discussed. A general framework is applied in a number of examples leading to some well-known models but also showing the possibility of more complex dynamics related to multiple equilibria. Our synthesis can provide a basis for many practical applications extending the scope of binary choice models.
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"date_created": "2026-03-02T18:01:14.461000Z",
"date_modified": "2026-03-02T18:01:14.461000Z",
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"abstract": "We investigate a class of binary choice models with social interactions. We\npropose a unifying perspective that integrates economic models using a utility\nfunction and psychological models using an impact function. A general approach\nfor analyzing the equilibrium structure of these models within mean-field\napproximation is developed. It is shown that within a mean-field approach both\nthe utility function and the impact function models are equivalent to threshold\nmodels. The interplay between heterogeneity and randomness in model formulation\nis discussed. A general framework is applied in a number of examples leading to\nsome well-known models but also showing the possibility of more complex\ndynamics related to multiple equilibria. Our synthesis can provide a basis for\nmany practical applications extending the scope of binary choice models.",
"arxiv_id": "physics/0609170",
"authors": [
"Katarzyna Ostasiewicz",
"Michal H. Tyc",
"Piotr Goliczewski",
"Piotr Magnuszewski",
"Andrzej Radosz",
"Jan Sendzimir"
],
"categories": [
"physics.soc-ph",
"q-fin.GN"
],
"title": "Integrating economic and psychological insights in binary choice models with social interactions",
"url": "https://arxiv.org/abs/physics/0609170"
},
"schema_id": "dorsal/arxiv",
"source": {
"execution_id": "14cebd32-bbd4-4b09-83cc-258d2bdbf7c5",
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"type": "Model",
"variant": "snapshot-2026-03-01",
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