Weighted Linear Discrete Choice
提出一种新的随机选择模型,为每个选项赋予效用和凸显参数,刻画经济摩擦;模型可被行为特征化,在均衡中产生直观解析解,并优于其他模型的需求预测。
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.