Academic Activities
[Research]Multiple-Constraint Choice Models with Corner and Interior Solutions
2011.05.06 Views 638 경영학연구분석센터
| Marketing Science Vol. 30, No. 3, May–June 2011, pp. 481–490 Takuya Satomura Faculty of Business and Commerce, Keio University, Tokyo 108-8345, Japan Jaehwan Kim Korea University Business School, Korea University, Seoul 136-701, Korea Greg M. Allenby Fisher College of Business, Ohio State University, Columbus, Ohio 43210 http://dx.doi.org/10.1287/mksc.1110.0636 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. Keywords multiple constraints ; choice model ; corner and interior solutions ; quantity restriction |