A Sample Nested Model Showing A Typical Tree Structure



This image is meant to depict the concept that consumers make a discrete choice among a set of different alternatives called nest and then choose a book in the concerned nest. The image consists of a three groups of arrows.

  • The first group consist of five arrows originating from the same point.
    • The first arrow points down and to the far left and is labeled "Novel".
    • The second arrow points down and slightly less to the left and is labeled "thriller".
    • The third arrow points down and slightly more to the left-center and is labaled "romance".
    • The fourth arrow points down and slightly to the right of center and is labeled with nine dots.
    • The fifth arrow points down and to the far right and is labeled "outside option".
  • The second group of arrows is on a line below the first group and consists of three arrows originating from the same point.
    • The first arrow points down and to the far left and is labeled "Book A".
    • The second arrow points straight down from the originating point and is labeled with five dots.
    • The third arrow points down and to the far right and is labeled Book "Z".
  • The third group of arrows is on the same line as the second group but to the right and consists of three arrows originating from the same point.
    • The first arrow points down and to the left and is labeled "Book A".
    • The second arrow points straight down from the originating point and is labeled with four dots.
    • The third arrow points down and to the right and is labeled "Book ZZ".

    To the left of the third group of arrows is a line of 11 dots.

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Updated June 25, 2015

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