Logit, CES, and rational inattention
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DOI: 10.1016/j.econlet.2019.108537
Abstract: We study fundamental links between two popular approaches to consumer choice: the multinomial logit model of individual discrete choice and the CES utility function, which describes a multiple choice of a representative consumer. We base… read more here.
Keywords: choice; ces utility; rational inattention; utility function ... See more keywords