Weighted Linear Discrete Choice

• 成果类型: Article
• 署名作者: Chambers, Christopher P.; Masatlioglu, Yusufcan; Natenzon, Paulo; Raymond, Collin
• 署名单位: Georgetown University; University System of Maryland; University of Maryland College Park; Washington University (WUSTL); Cornell University
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20220130
• 发表日期: 2025
• 页码: 1226-1257
• 关键词: Stochastic choice; visual fixations; BRAND AWARENESS; SALIENCE; attention; product; demand; rationality; preferences; Inattention

摘要

We introduce a new model of stochastic choice that assigns each choice option a utility, along with a salience parameter reflecting economic frictions. We characterize our model behaviorally and investigate its comparative statics properties. We show that the model generates intuitive closed-form solutions in equilibrium settings where firms can choose price, quality, and advertising. In addition, we show that the model allows for flexible substitution patterns and changes in market shares across choice sets. We demonstrate that our model can be easily identified and can outperform alternatives in demand prediction. (JEL D11, D21, D43, M37)