The physics of (ir)rational choice

Abstract: Even though classic theories and models of discrete choice pose man as a rational being, it has been shown extensively that people persistently violate rationality in their actual choices. Recent models of decision-making take these violations often (partially) into account, however, a unified framework has not been established. Here we propose such a framework, inspired by the Ising model from statistical physics, and show that representing choice problems as a graph, together with a simple choice process, allows us to explain both rational decisions as well as violations of rationality.