Process and context in choice models

Moshe Ben-Akiva*, André de Palma, Daniel McFadden, Maya Abou-Zeid, Pierre André Chiappori, Matthieu de Lapparent, Steven N. Durlauf, Mogens Fosgerau, Daisuke Fukuda, Stephane Hess, Charles Manski, Ariel Pakes, Nathalie Picard, Joan Walker

*Corresponding author for this work

Research output: Contribution to journalArticle

34 Scopus citations

Abstract

We develop a general framework that extends choice models by including an explicit representation of the process and context of decision making. Process refers to the steps involved in decision making. Context refers to factors affecting the process, focusing in this paper on social networks. The extended choice framework includes more behavioral richness through the explicit representation of the planning process preceding an action and its dynamics and the effects of context (family, friends, and market) on the process leading to a choice, as well as the inclusion of new types of subjective data in choice models. We discuss the key issues involved in applying the extended framework, focusing on richer data requirements, theories, and models, and present three partial demonstrations of the proposed framework. Future research challenges include the development of more comprehensive empirical tests of the extended modeling framework.

Original languageEnglish (US)
Pages (from-to)439-456
Number of pages18
JournalMarketing Letters
Volume23
Issue number2
DOIs
StatePublished - Jun 1 2012

Keywords

  • Context
  • Decision making process
  • Econometric models
  • Social networks
  • Subjective data

ASJC Scopus subject areas

  • Business and International Management
  • Economics and Econometrics
  • Marketing

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    Ben-Akiva, M., de Palma, A., McFadden, D., Abou-Zeid, M., Chiappori, P. A., de Lapparent, M., Durlauf, S. N., Fosgerau, M., Fukuda, D., Hess, S., Manski, C., Pakes, A., Picard, N., & Walker, J. (2012). Process and context in choice models. Marketing Letters, 23(2), 439-456. https://doi.org/10.1007/s11002-012-9180-7