Abstract
This paper proposes a conditional Curie–Weiss model as a model for decision making in a stylized society made up of binary decision makers that face a particular dichotomous choice between two options. Following Brock and Durlauf (Discrete choice with social interaction I: theory, 1955), we set-up both socio-economic and statistical mechanical models for the choice problem. We point out when both the socio-economic and statistical mechanical models give rise to the same self-consistent equilibrium mean choice level(s). Phase diagram of the associated statistical mechanical model and its socio-economic implications are discussed.
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Acknowledgements
The authors thank the anonymous referee, to an earlier version of this paper, who gave us various suggestions to improve the paper and also brought to our attention the literature on discrete choice.
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Opoku, A.A., Edusei, K.O. & Ansah, R.K. A Conditional Curie–Weiss Model for Stylized Multi-group Binary Choice with Social Interaction. J Stat Phys 171, 106–126 (2018). https://doi.org/10.1007/s10955-018-1988-y
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DOI: https://doi.org/10.1007/s10955-018-1988-y
Keywords
- Binary choice
- Social interaction
- Social utility
- Private utility
- Phase transition
- Curie–Weiss model
- Critical temperature
- External field