The dogit model is applicable even without perfectly captive buyers

Robert F. Bordley

Transportation Research Part B: Methodological, 1990, vol. 24, issue 4, 315-323

Abstract: The dogit choice model is a modification of the logit model to allow for 'captive' or 'perfect loyal' buyers. This paper derives the dogit choice model from a two-period loyalty model drawn from the marketing science literature. This will prove that the dogit model can be used even when buyers are not perfectly captive (or 'loyal') to one choice. We also deduce an equilibrium dogit model corresponding to the equilibrium choice probabilities when buyer choices from period to period follow the two-period marketing science loyalty model.

Date: 1990
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