Chair of Marketing and Consumer Behavior

Discrete Choice Modeling

Lecturer:
Dr. Ossama Elshiewy

Target group:

  • Master students
    (MDM, UF, FRS, Wi-Inf, Wi-Päd, Steuerlehre, Wirtschafts & Sozialgeschichte, International Economics, Development Economics, Angewandte Statistik, Psychologie)

  • All PhD students (Faculty of Economic Sciences or GRK 1666 "GlobalFood") interested in discrete choice modeling

Learning goals:
  • Discrete choice modeling deals with analyzing choice behavior of individuals (consumers, firms, etc.) as a function of variables that describe the choice alternatives and/or the individuals.

  • After successful attendance the students will understand the methodological principles of discrete choice modeling.

  • Further, they will be able to estimate own discrete choice models using the statistical programming language R. (Previous knowledge in R is not required!)

Course structure:
The course consists of two parts:
1. Attending a lecture (with integrated exercises)
2. Writing a term paper.

Important note: The lecture will be held in English, but the term paper can be written in either English or German.

Lecture content:
- Brief introduction to R
- Random Utility Theory
- Collecting Choice Data
---- Choice-based Conjoint
---- Consumer Purchase Data
- Analyzing Choice Data
---- Multinomial Logit (MNL) Models
---- Generalized Extreme Value Models
---- Finite Mixture and Mixed MNL Models
---- Hierarchical Bayesian MNL Models

Term paper:
The term paper should contain a self-conducted empirical project.
Students will be provided with topics and empirical data, but are also welcome to analyze own projects.
Students are advised to use the statistical programming language R (and submit their code), but can be allowed to use different software in exceptional cases.

Literature:
Train (2009). "Discrete Choice Methods with Simulation". 2nd Edition, Cambridge University Press.
Rossi, Allenby, and McCulloch (2005). "Bayesian Statistics and Marketing". Wiley.

Time and place:
Lecture (with integrated exercises)

Every Wednesday
(First date: October 24, 2018)
Time: 12:15 - 13:45 h
Place: MZG 7.153 (Blauer Turm - WiSoRZ)

Examination:
Term paper (~6000 words)
Credits: 6 ECTS
Deadline for submission: March, 2019

Theoretical, methodological and empirical elaboration of a selected topic in discrete choice modeling.

Helpful prerequisites:
Basics in
- Probability theory and distributions
- Hypothesis testing
- (Logistic) Regression analysis