Multiple discrete-continuous choice models: a reflective analysis and a prospective view

Discrete choice models are widely used to analyze consumers’ choice of a single, discrete alternative from a set of mutually exclusive choice alternatives. However, in numerous situations, consumers may choose multiple alternatives that are imperfect substitutes for one another, as opposed to a single alternative. Further, consumer choices typically involve decisions pertaining to “how much to consume” (i.e., a continuous quantity dimension) along with the discrete choices of “what to choose.” Such multiple discrete-continuous (MDC) choices, involving whether-to-choose and how-much-to-consume decisions for multiple goods, are ubiquitous in consumer decision-making and of interest for empirical enquiry in a variety of fields, including economics, marketing, and transportation. This paper reviews the econometric modeling structures used to model discrete-continuous choices. A review of the recent advances is provided along with a discussion of the several developments on the horizon and the challenges that lie beyond.