Linear Demand Systems are Inconsistent with Discrete Choice
The B. E. Journal of Theoretical Economics
4 Pages Posted: 10 Feb 2010 Last revised: 5 Sep 2012
Date Written: December 10, 2010
We show that with more than two options, a discrete choice model cannot generate linear demand.
Keywords: demand systems, discrete choice, linear demand
JEL Classification: C35, D43
Suggested Citation: Suggested Citation