Abstract
This paper presents the dogit model. That model is flexible enough to permit the choice among specific pairs of alternatives to be consistent with the independence from irrelevant alternatives axiom, as in a logit model, but it simultaneously allows the choice among other pairs not to be. Dogit parameters add an “income effect” to the “substitution effect” already built into the logit model; alternatively, they allow for the joint presence of compulsive and discretionary elements in consumer behavior, or for the identification of captive markets. Eventual estimation of the values of the parameters of the dogit model appears simpler than for the probit model.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
