Abstract
In this paper, we propose the concepts of substitutability and complementarity in discrete choice models. These concepts concern whether the choice probability of one alternative in a choice model increases or decreases with the utility of another alternative, and they play important roles in capturing certain practical choice patterns, such as the halo effect. We study conditions on discrete choice models that will lead to substitutability and complementarity. We also present ways of constructing choice models that exhibit complementary property.
Original language | English (US) |
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Pages (from-to) | 141-146 |
Number of pages | 6 |
Journal | Operations Research Letters |
Volume | 46 |
Issue number | 1 |
DOIs | |
State | Published - Jan 2018 |
Bibliographical note
Publisher Copyright:© 2017 Elsevier B.V.
Copyright:
Copyright 2017 Elsevier B.V., All rights reserved.
Keywords
- Complementarity
- Discrete choice models
- Halo effect
- Random utility model
- Representative agent model
- Substitutability