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

See all articles by Sonia Jaffe

Sonia Jaffe

University of Chicago

E. Glen Weyl

Plural Technology Collaboratory, Microsoft Research Special Projects; Plurality Institute; GETTING-Plurality Research Network

Date Written: December 10, 2010

Abstract

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

Jaffe, Sonia and Weyl, Eric Glen, Linear Demand Systems are Inconsistent with Discrete Choice (December 10, 2010). The B. E. Journal of Theoretical Economics, Available at SSRN: https://ssrn.com/abstract=1550434

Sonia Jaffe

University of Chicago ( email )

1101 East 58th Street
Chicago, IL 60637
United States

Eric Glen Weyl (Contact Author)

Plural Technology Collaboratory, Microsoft Research Special Projects ( email )

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8579984513 (Phone)

HOME PAGE: http://www.glenweyl.com

Plurality Institute ( email )

GETTING-Plurality Research Network ( email )

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Suite 520N
Cambridge, MA 02138
United States

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