We investigate the use of a canonical version of a discrete choice model due to Daganzo (1979) in optimal pricing and assortment planning. In contrast to multinomial and nested logit (the prevailing choice models used for optimizing prices and assortments), this model assumes a negatively skewed...

We investigate analytical and empirical properties of the Heteroscedastic Exponomial Choice (HEC) model to lay the groundwork for its use in theoretical and empirical research that build demand models on a discrete choice foundation. The HEC model generalizes the Exponomial Choice (EC) model by...