Which demand systems can be generated by discrete choice
Mark Armstrong,John Vickers +1 more
TLDR
This work provides a simple necessary and sufficient condition for when a multiproduct demand system can be generated from a discrete choice model with unit demands.About:
This article is published in Journal of Economic Theory.The article was published on 2015-07-01 and is currently open access. It has received 18 citations till now. The article focuses on the topics: Discrete choice.read more
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Ordered Consumer Search
TL;DR: In this article, the authors discuss situations in which consumers search through their options in a deliberate order, in contrast to more familiar models with random search, and show how ordered search can be reformulated as a simpler discrete choice problem without search frictions.
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On the microeconomic foundations of linear demand for differentiated products
TL;DR: This paper provides a thorough exploration of the microeconomic foundations for the multi-variate linear demand function for differentiated products, which is widely used in industrial organization and finds that strict concavity of the quadratic utility function is critical for the demand system to be well defined.
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Linear demand systems for differentiated goods: Overview and user’s guide
Philippe Choné,Laurent Linnemer +1 more
TL;DR: It is shown that all tractable versions of the model used in practice are (almost) identical and have a mean-variance structure.
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Payment Evasion: Payment Evasion
TL;DR: In this article, the authors show that a firm can use the purchase price and the fine imposed on detected payment evaders to discriminate between unobservable consumer types, and they illustrate with data from fare dodging on public transportation.
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Should traditional retailers function as pre-warehouses of online retailers?
TL;DR: A supply chain is constructed to investigate the reason why it is uncommon for the traditional retailer to function as the pre-warehouse of the online retailer, and an intrinsic rationale for theTraditional retailer not to supply the common product is identified, even if he is unambiguously cost advantageous vis-a-vis the third-party suppliers.
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The Ces Is a Discrete Choice Model
TL;DR: The CES demand function is a special case of a nested logit model whose second-stage is deterministic because the first-stage of the model is a deterministic function.
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A more general theory of commodity bundling
TL;DR: The standard model of bundling as a price discrimination device is extended to allow products to be substitutes and for Products to be supplied by separate sellers.
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Linear Demand Systems are Inconsistent with Discrete Choice
Sonia Jaffe,E. Glen Weyl +1 more
TL;DR: In this article, the authors show that with more than two options, a discrete choice model cannot generate linear demand and demonstrate a prediction of such discrete choice models that is falsifiable based on local second-order properties of demand.
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Discrete choice cannot generate demand that is additively separable in own price
Sonia Jaffe,Scott Duke Kominers +1 more
TL;DR: In this article, it was shown that in a unit demand discrete choice framework with at least three goods, demand cannot be additively separable in own price, and this result sharpens the analogous result of Jaffe and Weyl (2010) in the case of linear demand and has implications for testing of the discrete choice assumption.