Kuhn-Tucker Demand Models: Scalable Estimation and Universal Approximation
Kuhn-Tucker (KT) demand models characterize consumers’ budget allocation through the Karush-Kuhn-Tucker conditions of utility maximization. Classical specifications, including quadratic utility, are widely used to study pricing, assortment, and competition, but remain difficult to estimate from consumer data. By contrast, models designed for tractable estimation often impose restrictive assumptions on demand behavior. We address this gap … Read more