Multiple-constraint choice models with corner and interior solutions

Takuya Satomura, Jaehwan Kim, Greg M. Allenby

Research output: Contribution to journalArticle

22 Citations (Scopus)

Abstract

Achoice 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.

Original languageEnglish
Pages (from-to)481-490
Number of pages10
JournalMarketing Science
Volume30
Issue number3
DOIs
Publication statusPublished - 2011 May 1

Keywords

  • Choice model
  • Corner and interior solutions
  • Multiple constraints
  • Quantity restriction

ASJC Scopus subject areas

  • Business and International Management
  • Marketing

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