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

Microsoft ; RadicalxChange Foundation

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 )

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Eric Glen Weyl (Contact Author)

Microsoft ( email )

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

RadicalxChange Foundation ( email )

HOME PAGE: http://www.radicalxchange.org

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