Classical consumer theory assumes that products are infinitely divisible and consumers may purchase fractional quantities as dictated by their preferences and budget sets. However,for many goods and services individuals purchase only a few and sometimes at most one. Thus classical models of discrete choice in economics were developed to extend consumer choice theory to model demand of discrete ...

Researchers frequently use Latent Class (LC) choice models for strategic segmentation and targeting purposes to 1) find meaningful segments of respondents having different preferences, and 2) estimate part-worth utilities for these segments. However, LC models can form spurious segments that mainly differ in terms of scale (response error) but don’t differ much in terms of real preference patte...

Econometric discrete choice analysis is an essential component of studying individual choice behavior. In this chapter, we provide an overview of the motivation for, and structure of, advanced discrete choice models derived from random-utility maximization. 2 Handbook of Transport I: Transport Modeling

Researchers frequently use Latent Class (LC) choice models for strategic segmentation and targeting purposes to 1) find meaningful segments of respondents having different preferences, and 2) estimate part-worth utilities for these segments. However, LC models can form spurious segments that mainly differ in terms of scale (response error) but don’t differ much in terms of real preference patte...

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