Linear Demand Systems are Inconsistent with Discrete Choice

Sonia Jaffe and Eric Weyl ()

The B.E. Journal of Theoretical Economics, 2010, vol. 10, issue 1, 8

Abstract: We show that with more than two options, a discrete choice model cannot generate linear demand. In doing so, we demonstrate a prediction of such discrete choice models that is falsifiable based on local second-order properties of demand.

Keywords: linear demand; discrete choice (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (17)

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DOI: 10.2202/1935-1704.1729

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