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Deep Learning for Choice Modeling

Author

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  • Zhongze Cai
  • Hanzhao Wang
  • Kalyan Talluri
  • Xiaocheng Li

Abstract

Choice modeling has been a central topic in the study of individual preference or utility across many fields including economics, marketing, operations research, and psychology. While the vast majority of the literature on choice models has been devoted to the analytical properties that lead to managerial and policy-making insights, the existing methods to learn a choice model from empirical data are often either computationally intractable or sample inefficient. In this paper, we develop deep learning-based choice models under two settings of choice modeling: (i) feature-free and (ii) feature-based. Our model captures both the intrinsic utility for each candidate choice and the effect that the assortment has on the choice probability. Synthetic and real data experiments demonstrate the performances of proposed models in terms of the recovery of the existing choice models, sample complexity, assortment effect, architecture design, and model interpretation.

Suggested Citation

  • Zhongze Cai & Hanzhao Wang & Kalyan Talluri & Xiaocheng Li, 2022. "Deep Learning for Choice Modeling," Papers 2208.09325, arXiv.org.
  • Handle: RePEc:arx:papers:2208.09325
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    References listed on IDEAS

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    Cited by:

    1. Julia Heger & Robert Klein, 2024. "Assortment optimization: a systematic literature review," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 46(4), pages 1099-1161, December.

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