On substitutability and complementarity in discrete choice models

Guiyun Feng, Xiaobo Li, Zizhuo Wang

Research output: Contribution to journalArticlepeer-review

3 Scopus citations

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 languageEnglish (US)
Pages (from-to)141-146
Number of pages6
JournalOperations Research Letters
Volume46
Issue number1
DOIs
StatePublished - 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

Fingerprint Dive into the research topics of 'On substitutability and complementarity in discrete choice models'. Together they form a unique fingerprint.

Cite this