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

Sonia Jaffe

Becker Friedman Institute for Research in Economics at the University of Chicago

E. Glen Weyl

Microsoft Research; Yale University

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, E. 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

Becker Friedman Institute for Research in Economics at the University of Chicago ( email )

1101 East 58th Street
Chicago, IL 60637
United States

Eric Glen Weyl (Contact Author)

Microsoft Research ( email )

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7th Floor
New York, NY 10011
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(857) 998-4513 (Phone)

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

Yale University ( email )

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New Haven, CT 06520-8268
United States

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