Open AccessA Random Regret Minimization-based Discrete Choice Model
Author(s) -
Caspar Chorus
Publication year - 2012
Publication title -
springerbriefs in business
Language(s) - English
Resource type - Book series
eISSN - 2191-5490
pISSN - 2191-5482
DOI - 10.1007/978-3-642-29151-7_2
Subject(s) - regret , mathematics , random function , function (biology) , sect , random error , statistics , mathematical optimization , random variable , econometrics , statistical physics , combinatorics , physics , philosophy , evolutionary biology , biology , theology
This Chapter presents the RRM-model. First, the Random Regretfunction is presented and explained (Sect. 2.1). Subsequently, this function is compared with the classical linear-additive Random Utility-function (Sect. 2.2). Finally, it is shown how the Random Regret-function translates into MNL-type choice probabilities for a particular distribution of the random error terms (Sect. 2.3)
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