Defining Choice Set
When a researcher has some consumer choice data in his/her hand and tries to construct a choice model and simulate it against the data, he/she needs to first define a choice set. A Choice Set in discrete choice models is defined to be finite, exhaustive, and mutually exclusive. For instance, consider households' choice of how many laptops to own. The researcher can define the choice set depending on the nature of the data and the interpretation they wish to draw, as long as it satisfies three properties mentioned above. Some examples of choice sets that meet the categories are the following:
- 0, 1, More than 1 laptop
- 0, 1, 2, More than 2 laptops
- Less than 2, 2, 3, 4, More than 4 laptops
Read more about this topic: Choice Model Simulation
Famous quotes containing the words defining, choice and/or set:
“Art, if one employs this term in the broad sense that includes poetry within its realm, is an art of creation laden with ideals, located at the very core of the life of a people, defining the spiritual and moral shape of that life.”
—Ivan Sergeevich Turgenev (1818–1883)
“But real action is in silent moments. The epochs of our life are not in the visible facts of our choice of a calling, our marriage, our acquisition of an office, and the like, but in a silent thought by the way-side as we walk; in a thought which revises our entire manner of life, and says,—”Thus hast thou done, but it were better thus.””
—Ralph Waldo Emerson (1803–1882)
“Groot: Now wait a minute, Quo. You really ain’t gonna take a man’s only set of teeth, are ya?
Quo: Uh huh.
Groot: Yeah, but I gotta use ‘em for eatin’.
Quo: Come grub you get ‘em.
Groot: Whad ya’ gonna do with ‘em?
Quo: My name now Two-Jaw Quo.”
—Borden Chase [Frank Fowler] (1900–1971)