Publication Type
Journal Article
Version
submittedVersion
Publication Date
1-2018
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.
Keywords
Discrete choice models, Substitutability, Complementarity, Halo effect, Random utility model, Representative agent model
Discipline
Operations and Supply Chain Management
Research Areas
Operations Management
Publication
Operations Research Letters
Volume
46
Issue
1
First Page
141
Last Page
146
ISSN
0167-6377
Identifier
10.1016/j.orl.2017.11.016
Publisher
Elsevier
Citation
FENG, Guiyun; LI, Xiaobo; and WANG, Zizhuo.
On substitutability and complementarity in discrete choice models. (2018). Operations Research Letters. 46, (1), 141-146.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/6499
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1016/j.orl.2017.11.016