Multiple-Constraint Choice Models with Corner and Interior Solutions

Takuya Satomura (), Jaehwan Kim () and Greg M. Allenby ()
Additional contact information
Takuya Satomura: Faculty of Business and Commerce, Keio University, Tokyo 108-8345, Japan
Jaehwan Kim: Korea University Business School, Korea University, Seoul 136-701, Korea
Greg M. Allenby: Fisher College of Business, Ohio State University, Columbus, Ohio 43210

Marketing Science, 2011, vol. 30, issue 3, 481-490

Abstract: A choice 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.

Keywords: multiple constraints; choice model; corner and interior solutions; quantity restriction (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (25)

Downloads: (external link)
http://dx.doi.org/10.1287/mksc.1110.0636 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:ormksc:v:30:y:2011:i:3:p:481-490

Access Statistics for this article

More articles in Marketing Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().