On substitutability and complementarity in discrete choice models

Guiyun Feng, Xiaobo Li, Zizhuo Wang

Research output: Contribution to journalArticle

1 Citation (Scopus)

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

Fingerprint

Discrete Choice Models
Choice Models
Complementarity
Alternatives
Decrease
Concepts
Discrete choice models
Substitutability
Choice models
Halo effect

Keywords

  • Complementarity
  • Discrete choice models
  • Halo effect
  • Random utility model
  • Representative agent model
  • Substitutability

Cite this

On substitutability and complementarity in discrete choice models. / Feng, Guiyun; Li, Xiaobo; Wang, Zizhuo.

In: Operations Research Letters, Vol. 46, No. 1, 01.2018, p. 141-146.

Research output: Contribution to journalArticle

Feng, Guiyun ; Li, Xiaobo ; Wang, Zizhuo. / On substitutability and complementarity in discrete choice models. In: Operations Research Letters. 2018 ; Vol. 46, No. 1. pp. 141-146.
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