Consumer Choice Modeling – A Discussion

We will review some of the key models that have been used and proposed to represent consumer choice (random utility, rank list, consideration set, consideration set – rank list, etc.) and consumer choice probabilities (attraction, exponomial, Markov chain, etc.). Alternative approaches to characterizing the (1) random choices, and (2) choice probabilities of a representative customer will be discussed. Spatial versus temporal view of consumer choice modeling will be considered. Further discussion will focus on rational versus irrational modeling (bounded rationality, satisficing, etc.).

Based on joint work with Annabelle Feng (Purdue University) and Mengying Xue (University of Science and Technology of China, Hefei).