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The B.E. Journal of Theoretical Economics

Editor-in-Chief: Schipper, Burkhard

Ed. by Fong, Yuk-fai / Peeters, Ronald / Puzzello , Daniela / Rivas, Javier / Wenzelburger, Jan

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1935-1704
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Linear Demand Systems are Inconsistent with Discrete Choice

Sonia Jaffe
  • 1Harvard University,
/ E. Glen Weyl
  • 2Harvard University,
Published Online: 2010-12-21 | DOI: https://doi.org/10.2202/1935-1704.1729

We show that with more than two options, a discrete choice model cannot generate linear demand. In doing so, we demonstrate a prediction of such discrete choice models that is falsifiable based on local second-order properties of demand.

Keywords: linear demand; discrete choice

About the article

Published Online: 2010-12-21


Citation Information: The B.E. Journal of Theoretical Economics, ISSN (Online) 1935-1704, DOI: https://doi.org/10.2202/1935-1704.1729. Export Citation

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