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Identifying combinatorial valuations from aggregate demand

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  • Sher, Itai
  • Kim, Kyoo il

Abstract

We study identification of combinatorial valuations from aggregate demand. Each utility function takes as arguments subsets or, alternatively, quantities of the multiple goods. We exploit mathematical insights from auction theory to generically identify the distribution of utility functions. In our setting, aggregate demand for each item is observable while demand for bundles is not. Nevertheless, our identification result allows us to recover the latter.

Suggested Citation

  • Sher, Itai & Kim, Kyoo il, 2014. "Identifying combinatorial valuations from aggregate demand," Journal of Economic Theory, Elsevier, vol. 153(C), pages 428-458.
    • Handle: RePEc:eee:jetheo:v:153:y:2014:i:c:p:428-458
    DOI: 10.1016/j.jet.2014.07.009
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    Citations

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    Cited by:

    1. Fu Ouyang & Thomas Tao Yang, 2020. "Semiparametric Discrete Choice Models for Bundles," Discussion Papers Series 625, School of Economics, University of Queensland, Australia.
    2. Christopher P. Chambers & Federico Echenique, 2018. "A Characterization of Combinatorial Demand," Mathematics of Operations Research, INFORMS, vol. 43(1), pages 222-227, February.
    3. Fu Ouyang & Thomas T. Yang, 2023. "Semiparametric Discrete Choice Models for Bundles," Papers 2306.04135, arXiv.org, revised Nov 2023.
    4. Wang, Ao, 2021. "A BLP Demand Model of Product-Level Market Shares with Complementarity," The Warwick Economics Research Paper Series (TWERPS) 1351, University of Warwick, Department of Economics.
    5. Iaria, Alessandro & ,, 2020. "Identification and Estimation of Demand for Bundles," CEPR Discussion Papers 14363, C.E.P.R. Discussion Papers.
    6. Ouyang, Fu & Yang, Thomas Tao & Zhang, Hanghui, 2020. "Semiparametric identification and estimation of discrete choice models for bundles," Economics Letters, Elsevier, vol. 193(C).

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    More about this item

    Keywords

    Combinatorial valuations; Identification; Distribution of utility functions; Submodularity; Gross substitutes; Combinatorial auctions;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions

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