DISCRETE-CHOICE MODELS - THEORY AND APPLICATIONS TO MICROECONOMICS

In discrete choice models, the individual is assumed to be not necessarily consistent with the standard model of perfect rationality. This paper aims at providing several explanations of such a behavior and at illustrating this approach in microeconomics. Two specific applications are considered : the first one is devoted to product differentiation (a la Chamberlin) and the second, to agents selection within an organization. This analysis gives rise to the following proposition: as soon as there is some information failure about the possible actions, discrete choice models suggest a method which can be efficiently applied and thus, which can improve the understanding of such situations.