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Related papers: The Limits of Identification in Discrete Choice

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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

We characterize those ex-ante restrictions on the random utility model which lead to identification. We first identify a simple class of perturbations which transfer mass from a suitable pair of preferences to the pair formed by swapping…

Theoretical Economics · Economics 2024-08-14 Peter P. Caradonna , Christopher Turansick

We characterize the identified sets of a wide range of stochastic choice models, including random utility, various models of boundedly-rational behavior, and dynamic discrete choice. In each of these settings, we show two distributions over…

Theoretical Economics · Economics 2026-02-24 Peter Caradonna , Christopher Turansick

An experimenter seeks to learn a subject's preference relation. The experimenter produces pairs of alternatives. For each pair, the subject is asked to choose. We argue that, in general, large but finite data do not give close…

Theoretical Economics · Economics 2018-08-01 Christopher P. Chambers , Federico Echenique , Nicolas S. Lambert

Empirical research often cites observed choice responses to variation that shifts expected discounted future utilities, but not current utilities, as an intuitive source of information on time preferences. We study the identification of…

Econometrics · Economics 2020-05-28 Jaap H. Abbring , Øystein Daljord

We provide a sharp identification region for discrete choice models where consumers' preferences are not necessarily complete even if only aggregate choice data is available. Behavior is modeled using an upper and a lower utility for each…

Econometrics · Economics 2025-02-19 Luca Rigotti , Arie Beresteanu

McFadden's random-utility model of multinomial choice has long been the workhorse of applied research. We establish shape-restrictions under which multinomial choice-probability functions can be rationalized via random-utility models with…

Econometrics · Economics 2021-05-20 Debopam Bhattacharya

We study preferences estimated from finite choice experiments and provide sufficient conditions for convergence to a unique underlying "true" preference. Our conditions are weak, and therefore valid in a wide range of economic environments.…

Theoretical Economics · Economics 2020-11-03 Christopher P. Chambers , Federico Echenique , Nicolas Lambert

This paper is concerned with learning decision makers' preferences using data on observed choices from a finite set of risky alternatives. We propose a discrete choice model with unobserved heterogeneity in consideration sets and in…

Econometrics · Economics 2021-01-07 Levon Barseghyan , Francesca Molinari , Matthew Thirkettle

Incorporating graph side information into recommender systems has been widely used to better predict ratings, but relatively few works have focused on theoretical guarantees. Ahn et al. (2018) firstly characterized the optimal sample…

Information Theory · Computer Science 2021-09-09 Changhun Jo , Kangwook Lee

The random utility model (RUM, McFadden and Richter, 1990) has been the standard tool to describe the behavior of a population of decision makers. RUM assumes that decision makers behave as if they maximize a rational preference over a…

General Economics · Economics 2022-07-05 Victor H. Aguiar , Maria Jose Boccardi , Nail Kashaev , Jeongbin Kim

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

Latent class models have wide applications in social and biological sciences. In many applications, pre-specified restrictions are imposed on the parameter space of latent class models, through a design matrix, to reflect practitioners'…

Statistics Theory · Mathematics 2019-06-03 Yuqi Gu , Gongjun Xu

Choice models, which capture popular preferences over objects of interest, play a key role in making decisions whose eventual outcome is impacted by human choice behavior. In most scenarios, the choice model, which can effectively be viewed…

Methodology · Statistics 2011-09-22 Vivek F. Farias , Srikanth Jagabathula , Devavrat Shah

We study the identification of dynamic discrete choice models with sophisticated, quasi-hyperbolic time preferences under exclusion restrictions. We consider both standard finite horizon problems and empirically useful infinite horizon…

Econometrics · Economics 2025-07-11 Jaap H. Abbring , Øystein Daljord , Fedor Iskhakov

We propose a robust method of discrete choice analysis when agents' choice sets are unobserved. Our core model assumes nothing about agents' choice sets apart from their minimum size. Importantly, it leaves unrestricted the dependence,…

Econometrics · Economics 2021-02-11 Levon Barseghyan , Maura Coughlin , Francesca Molinari , Joshua C. Teitelbaum

This paper develops a framework to study the statistical power of revealed-preference tests. With randomly sampled budgets and mild smoothness of demand, statistical learning implies that any model consistent with the data must approximate…

Theoretical Economics · Economics 2026-02-12 Charles Gauthier , Raghav Malhotra , Agustin Troccoli Moretti

Models allowing for random heterogeneity, such as mixed logit and latent class, are generally observed to obtain superior model fit and yield detailed insights into unobserved preference heterogeneity. Using theoretical arguments and two…

Econometrics · Economics 2025-10-13 Stephane Hess , Sander van Cranenburgh

A central push in operations models over the last decade has been the incorporation of models of customer choice. Real world implementations of many of these models face the formidable stumbling block of simply identifying the `right' model…

Applications · Statistics 2011-06-23 Vivek F. Farias , Srikanth Jagabathula , Devavrat Shah

We generalize the stochastic revealed preference methodology of McFadden and Richter (1990) for finite choice sets to settings with limited consideration. Our approach is nonparametric and requires partial choice set variation. We impose a…

Theoretical Economics · Economics 2022-05-19 Nail Kashaev , Victor H. Aguiar
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