TY - JOUR
T1 - Cumulative Discrete Choice
AU - Gilboa, Itzhak
AU - Pazgal, Amit
PY - 2001
Y1 - 2001
N2 - We present a discrete choice model in which a consumer's impression of each alternative is based on her memory of past experience with this choice, and is stochastically updated whenever the alternative is chosen. The consumer remembers a cumulative utility index per alternative, and, when an alternative is chosen, the index is updated by the addition of a random variable, interpreted as instantaneous utility. We prove that the frequencies of choice converge, with probability 1, to limit frequencies, which can be computed from the model's parameters.
AB - We present a discrete choice model in which a consumer's impression of each alternative is based on her memory of past experience with this choice, and is stochastically updated whenever the alternative is chosen. The consumer remembers a cumulative utility index per alternative, and, when an alternative is chosen, the index is updated by the addition of a random variable, interpreted as instantaneous utility. We prove that the frequencies of choice converge, with probability 1, to limit frequencies, which can be computed from the model's parameters.
UR - http://www.scopus.com/inward/record.url?scp=0008783587&partnerID=8YFLogxK
U2 - 10.1023/A:1011134718403
DO - 10.1023/A:1011134718403
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AN - SCOPUS:0008783587
SN - 0923-0645
VL - 12
SP - 119
EP - 130
JO - Marketing Letters
JF - Marketing Letters
IS - 2
ER -