Multiple-Constraint Choice Models with Corner and Interior Solutions

Authors:
Takuya Satomura;Jaehwan Kim;Greg M. Allenby
Affiliations:
Faculty of Business and Commerce, Keio University, Tokyo 108-8345, Japan;Korea University Business School, Korea University, Seoul 136-701, Korea;Fisher College of Business, Ohio State University, Columbus, Ohio 43210
Venue:
Marketing Science
Year:
2011

Citing 4
Cited 1

Modeling Consumer Demand for Variety

Marketing Science
How Much Does the Market Value an Improvement in a Product Attribute?

Marketing Science
Multiple Discreteness and Product Differentiation: Demand for Carbonated Soft Drinks

Marketing Science
A Choice Model with Conjunctive, Disjunctive, and Compensatory Screening Rules

Marketing Science

Structural Workshop Paper---Discrete-Choice Models of Consumer Demand in Marketing

Marketing Science

Quantified Score

Hi-index	0.00

Visualization

Abstract

A choice model based on direct utility maximization subject to an arbitrary number of constraints is developed and applied to conjoint data. The model can accommodate both corner and interior solutions, and it provides insights into the proportion of respondents bound by each constraint. Application to volumetric choice data reveals that the majority of respondents make choices consistent with price and quantity restrictions. Estimates based on a single monetary-constraint choice model are shown to lead to biased estimates of the monetary value of attribute levels.