Choice Models: Predicting Consumer Behavior

This lecture introduces the concept of choice models, which are used to predict human behavior in various decision-making scenarios. The instructor explains how these models can quantify trade-offs, subjective preferences, and heterogeneity in decision-making. Through real-world examples like energy consumption choices and smartphone purchases, the lecture demonstrates how choice models can be applied to understand and predict consumer choices, demands, and market shares. By the end of the course, students will have a solid understanding of choice models and the ability to create behavioral models in practical contexts.