We develop a general framework that extends choice models by including an explicit
representation of the process and context of decision making. Process refers to the steps involved in
decision making. Context refers to factors affecting the process, focusing in this paper on social networks.
The extended choice framework includes more behavioral richness through the explicit representation of
the planning process preceding an action and its dynamics and the effects of context (family, friends, and
market) on the process leading to a choice, as well as the inclusion of new types of subjective data in
choice models. We discuss the key issues involved in applying the extended framework, focusing on
richer data requirements, theories, and models, and present three partial demonstrations of the proposed
framework. Future research challenges include the development of more comprehensive empirical tests of
the extended modeling framework.
- Social networks
- Subjective data
- Econometric models
- Decision making process