The ALM is a logit model, which is a particular random utility choice model. In that broad class of models, each consumer makes a single choice from a “choice set,” generally consisting of certain “inside goods” and an “outside good,” reflecting the choice of “none of the above.” While similar in concept, the inside goods may be more or less inclusive than a relevant antitrust market. Because c...

We explore theoretical foundations and issues in the empirical estimation of conflict technologies. Such technologies are probabilistic choice functions that depend on the military capacities of adversaries, where the military capacities themselves depend on economic inputs via ordinary production functions. Different classes of functional forms can be derived stochastically or axiomatically. T...

We are grateful to Amy Finkelstein, Panle Jia, Jerry Hausman and seminar participants at Boston University, Carnegie Mellon University, Duke, MIT and the NBER for helpful comments; to Jim Hendrix, Chris Messner, Pallavi Mudumby, Steven Pieri and John Porell from Wolters Kluwer for providing data; to Matthew Harding for providing Matlab code, to Iuliana Pascu, Arnaldo Pereira, Charles Wu, Joseph...

Recommender systems are increasingly used for personalised navigation through large amounts of information, especially in the e-commerce domain for product purchase advice. Whilst much research effort is spent on developing recommenders further, there is little to no effort spent on analysing the impact of them – neither on the supply (company) nor demand (consumer) side. In this paper, we inve...

This Essay has two goals. The first is to present an economic theory of preemption as a choice among regulatory regimes. The optimal regime choice model is used to generate specific implications for the court decisions on preemption of products liability claims. The second objective is to extrapolate from the regime choice model to consider its implications for broader controversies about preem...

The primary objective of this study is to compare and understand differences in work motivation of contractual and permanent IT professionals, who work together on the same software development teams. This empirical study is based on integrated force-choice expectancy theory model. The choice model explain one important dimension of motivation – why an individual will choose one goal instead of...

Bid data from a Vickrey auction for pork chops with embedded environmental attributes were analyzed. I t was found that approximately 62% of the participants had a positive WTP for the most "environmentally friendly" ly" package of pork. Thirty percent of the participants had no WTP, and 8% had a negative WTP. A polychoto­ mous choice model was used to accommodate data having an anchoring point...

We analyze various models introduced in social choice to aggregate individual preferences. We show that on the basis of most of these models there is a system of functional equations such that, in many cases, the origin of impossibility results in a social choice model is the non-existence of a solution for the corresponding system. Among the functional equations considered, we pay a particular...

The theory of rational choice assumes that when people make decisions they do so in order to maximize their utility. In order to achieve this goal they ought to use all the information available and consider all the choices available to choose an optimal choice. This paper investigates what happens when decisions are made by artificially intelligent machines in the market rather than human bein...

In airline schedule planning models, the demand and price information are usually taken as inputs to the model. Therefore schedule and capacity decisions are taken separately from pricing decisions. In this paper we present an integrated scheduling, fleeting and pricing model for a single airline where these decisions are taken simultaneously. This integration enables to explicitly model supply...