IDEAS home Printed from https://ideas.repec.org/p/ngi/dpaper/07-07.html
   My bibliography  Save this paper

A Representative Consumer Framework for Discrete Choice Models with Endogenous Total Demand

Author

Listed:
  • Yukihiro Kidokoro

    (National Graduate Institute for Policy Studies)

Abstract

Standard discrete choice models correspond to 'partial' utility maximization in which the controlled total is determined exogenously; typically, consumers are assumed to demand at most one unit. The purpose of this paper is to formulate a model in which discrete choice models are incorporated consistently into the full utility maximization framework and to establish a theoretical foundation for discrete choice models that assume no a priori controlled total. We derive the form of the corresponding indirect utility function of a representative consumer and the own-price and cross-price elasticities, and develop a method for measuring welfare, clarifying their implications.

Suggested Citation

  • Yukihiro Kidokoro, 2007. "A Representative Consumer Framework for Discrete Choice Models with Endogenous Total Demand," GRIPS Discussion Papers 07-07, National Graduate Institute for Policy Studies, revised Nov 2008.
  • Handle: RePEc:ngi:dpaper:07-07
    as

    Download full text from publisher

    File URL: https://grips.repo.nii.ac.jp/?action=repository_action_common_download&item_id=977&item_no=1&attribute_id=20&file_no=1
    Download Restriction: no

    References listed on IDEAS

    as
    1. DE PALMA, André & KILANI, Karim, 2003. "(Un)conditional distribution of compensating variation in discrete choice models," CORE Discussion Papers 2003100, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Discrete choice; representative consumer; endogenous demand; logit model; generalized extreme value model;

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ngi:dpaper:07-07. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/gripsjp.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.