Discrete Choice Model in the Big Data Era : Creating Abundant Datasets about Choice Situations

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Author(s)

    • SEKI Yoichi
    • Division of Electronics and Informatics, Gunma University

Abstract

The discrete choice model (DCM) is a promising method used to predict the choices of decision-makers. The most basic DCM is a multinomial logit (MNL) model. One of the basic characteristics of this model is that it exhibits independence from irrelevant alternatives (IIA). This property can be seen as a restriction imposed by the model. However, we are now entering a new era where abundant data about choice situations are available. In this era of "big data," we propose use of a simple MNL model to overcome the problem of IIA by considering interaction effects between the attributes of decision-makers and attributes of alternatives.

Journal

  • Journal of Japan Industrial Management Association

    Journal of Japan Industrial Management Association 64(2), 343-347, 2013-07-15

    Japan Industrial Management Association

References:  5

Codes

  • NII Article ID (NAID)
    10031197135
  • NII NACSIS-CAT ID (NCID)
    AN10561806
  • Text Lang
    ENG
  • Article Type
    REV
  • ISSN
    13422618
  • Data Source
    CJP  J-STAGE 
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