Models of Multi-Category Choice Behavior

Current developments in statistical and econometric models of multi-category choice behavior of households are reviewed, discussing the modeling methodologies used, the empirical findings that have emerged so far, and directions for future research.

Abstract

Given the advent of basket-level purchasing data of households, choice modelers are actively engaged in the development of statistical and econometric models of multi-category choice behavior of households. This paper reviews current developments in this area of research, discussing the modeling methodologies that have been used, the empirical findings that have emerged so far, and directions for future research. We also motivate the use of Bayesian methods to overcome the computational challenges involved in estimation. Copyright Springer Science + Business Media, Inc. 2005