English

A Random Rule Model

General Economics 2026-04-15 v3 Economics

Abstract

We model stochastic choice as environment-dependent switching among a small library of deterministic decision rules. A Random Rule Model generates menu-level choice probabilities via named, interpretable rules weighted by observable menu characteristics. Identification has a two-step structure: within-feature decisive-side variation identifies relative rule weights; cross-feature richness identifies the gate. Applied to binary lottery choices, the estimated weights concentrate on a small subset of rules and shift systematically with complexity and dispersion asymmetry. The model closes nearly all of the prediction gap to a flexible neural-network benchmark, while remaining interpretable, restrictive under permutation diagnostics, and portable to an independent dataset.

Keywords

Cite

@article{arxiv.2603.04105,
  title  = {A Random Rule Model},
  author = {Avner Seror},
  journal= {arXiv preprint arXiv:2603.04105},
  year   = {2026}
}