On substitutability and complementarity in discrete choice models

• Main Authors: FENG, Guiyun, LI, Xiaobo, WANG, Zizhuo
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2018
• Subjects: Discrete choice models; Substitutability; Complementarity; Halo effect; Random utility model; Representative agent model; Operations and Supply Chain Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/6499; https://ink.library.smu.edu.sg/context/lkcsb_research/article/7498/viewcontent/Substitutability_Complementarity_DCM_sv.pdf
• Institution: Singapore Management University

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 captur...