Discrete Choice Models

Discrete choice models are statistical tools used to understand how people make decisions when choosing between a limited set of options, such as different brands, products, or services. They analyze the factors that influence choices—like price, features, or personal preferences—and predict which option someone is likely to pick. These models help businesses and policymakers design better products, services, or policies by revealing what drives decision-making in specific contexts. Essentially, they turn observed choices into insights about preferences and trade-offs that shape individual behavior.