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We develop new robust discrete choice tools to learn about the average willingness to pay for a price subsidy and its effects on demand given exogenous, discrete variation in prices. Our starting point is a nonparametric, nonseparable model…

General Economics · Economics 2024-08-21 Vishal Kamat , Samuel Norris

Empirical welfare analyses often impose stringent parametric assumptions on individuals' preferences and neglect unobserved preference heterogeneity. We develop a framework to conduct individual and social welfare analysis for discrete…

Theoretical Economics · Economics 2025-05-20 Bart Capéau , Liebrecht De Sadeleer , Sebastiaan Maes

In a two-stage model of choice a decision maker first shortlists a given menu and then applies her preferences. We show that a sizeable class of these models run into significant issues in terms of identification of preferences…

Theoretical Economics · Economics 2024-11-14 Mikhail Freer , Hassan Nosratabadi

We present a recommender system based on the Random Utility Model. Online shoppers are modeled as rational decision makers with limited information, and the recommendation task is formulated as the problem of optimally enriching the…

Computer Science and Game Theory · Computer Science 2024-09-24 Benjamin Heymann , Flavian Vasile , David Rohde

To choose between two discrete goods, a consumer pays attention to only those with prices below a threshold. From these, she chooses her most preferred good. We assume consumers in a population have the same preference but may have…

Theoretical Economics · Economics 2025-11-07 Kaushil Patel

This paper introduces metrics for welfare analysis in dynamic models. We develop estimation and inference for these parameters even in the presence of a high-dimensional state space. Examples of welfare metrics include average welfare,…

Machine Learning · Statistics 2025-05-19 Victor Chernozhukov , Whitney Newey , Vira Semenova

We propose a new model for aggregating preferences over a set of indivisible items based on a quantile value. In this model, each agent is endowed with a specific quantile, and the value of a given bundle is defined by the corresponding…

Computer Science and Game Theory · Computer Science 2026-05-06 Haris Aziz , Shivika Narang , Mashbat Suzuki

Welfare economics relies on access to agents' utility functions: we revisit classical questions in welfare economics, assuming access to data on agents' past choices instead of their utilities. Our main result considers the existence of…

Theoretical Economics · Economics 2024-06-26 Christopher P Chambers , Federico Echenique

Recovering and distinguishing between the strict-preference, indifference and/or indecisiveness parts of a decision maker's preferences is a challenging task but also important for testing theory and conducting welfare analysis. This paper…

Theoretical Economics · Economics 2025-09-15 Georgios Gerasimou

We introduce a novel model architecture that incorporates network effects into discrete choice problems, achieving higher predictive performance than standard discrete choice models while offering greater interpretability than…

Machine Learning · Computer Science 2025-05-26 Daniel F. Villarraga , Ricardo A. Daziano

Many real-life settings of consumer-choice involve social interactions, causing targeted policies to have spillover-effects. This paper develops novel empirical tools for analyzing demand and welfare-effects of policy-interventions in…

Econometrics · Economics 2024-05-09 Debopam Bhattacharya , Pascaline Dupas , Shin Kanaya

Sequential allocation is a simple and attractive mechanism for the allocation of indivisible goods. Agents take turns, according to a policy, to pick items. Sequential allocation is guaranteed to return an allocation which is efficient but…

Artificial Intelligence · Computer Science 2018-01-17 Haris Aziz , Thomas Kalinowski , Toby Walsh , Lirong Xia

We obtain a necessary and sufficient condition under which random-coefficient discrete choice models, such as mixed-logit models, are rich enough to approximate any nonparametric random utility models arbitrarily well across choice sets.…

Theoretical Economics · Economics 2023-12-12 Haoge Chang , Yusuke Narita , Kota Saito

A family of models of individual discrete choice are constructed by means of statistical averaging of choices made by a subject in a reinforcement learning process, where the subject has short, k-term memory span. The choice probabilities…

Econometrics · Economics 2019-08-20 Misha Perepelitsa

This paper proposes a framewrok for analyzing how the welfare effects of policy interventions are distributed across individuals when those effects are unobserved. Rather than focusing solely on average outcomes, the approach uses readily…

Econometrics · Economics 2025-12-25 Costas Lambros , Emerson Melo

To determine the welfare implications of price changes in demand data, we introduce a revealed preference relation over prices. We show that the absence of cycles in this relation characterizes a consumer who trades off the utility of…

Econometrics · Economics 2024-07-03 Rahul Deb , Yuichi Kitamura , John K. -H. Quah , Jörg Stoye

We consider a setting where agents take action by following their role models in a social network, and study strategies for a social planner to help agents by revealing whether the role models are positive or negative. Specifically, agents…

Artificial Intelligence · Computer Science 2026-03-04 Avrim Blum , Keziah Naggita , Matthew R. Walter , Jingyan Wang

In a consideration set model, an individual maximizes utility among the considered alternatives. I relate a consideration set additive random utility model to classic discrete choice and the extended additive random utility model, in which…

Econometrics · Economics 2024-05-24 Roy Allen

Harsanyi (1955) showed that the only way to aggregate individual preferences into a social preference which satisfies certain desirable properties is ``utilitarianism'', whereby the social utility function is a weighted average of…

Theoretical Economics · Economics 2024-11-05 Federico Echenique , Quitzé Valenzuela-Stookey

We provide sufficient conditions for semi-nonparametric point identification of a mixture model of decision making under risk, when agents make choices in multiple lines of insurance coverage (contexts) by purchasing a bundle. As a first…

Econometrics · Economics 2023-07-19 Levon Barseghyan , Francesca Molinari
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