Partial Identification of Heterogeneity in Preference Orderings Over Discrete Choices
AbstractWe study a variant of a random utility model that takes a probability distribution over preference relations as its primitive. We do not model products using a space of observed characteristics. The distribution of preferences is only partially identified using cross-sectional data on varying budget sets. Imposing monotonicity in product characteristics does not restore full identification. Using a linear programming approach to partial identification, we show how to obtain bounds on probabilities of any ordering relation. We also do constructively point identify the proportion of consumers who prefer one budget set over one or two others. This result is useful for welfare. Panel data and special regressors are two ways to gain full point identification.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 17346.
Date of creation: Aug 2011
Date of revision:
Note: IO TWP
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Find related papers by JEL classification:
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- L0 - Industrial Organization - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-09-05 (All new papers)
- NEP-DCM-2011-09-05 (Discrete Choice Models)
- NEP-ECM-2011-09-05 (Econometrics)
- NEP-MKT-2011-09-05 (Marketing)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ichimura, Hidehiko & Thompson, T. Scott, 1998.
"Maximum likelihood estimation of a binary choice model with random coefficients of unknown distribution,"
Journal of Econometrics,
Elsevier, vol. 86(2), pages 269-295, June.
- Ichimura, H. & Thompson, S., 1993. "Maximum Likelihood Estimation of a Binary Choice Model with Random Coefficients of Unknown Distributions," Papers 268, Minnesota - Center for Economic Research.
- Arthur Lewbel, 1999.
"Semiparametric Qualitative Response Model Estimation with Unknown Heteroskedasticity or Instrumental Variables,"
Boston College Working Papers in Economics
454, Boston College Department of Economics.
- Lewbel, Arthur, 2000. "Semiparametric qualitative response model estimation with unknown heteroscedasticity or instrumental variables," Journal of Econometrics, Elsevier, vol. 97(1), pages 145-177, July.
- Barbera, Salvador & Pattanaik, Prasanta K, 1986. "Falmagne and the Rationalizability of Stochastic Choices in Terms of Random Orderings," Econometrica, Econometric Society, vol. 54(3), pages 707-15, May.
- Matzkin, Rosa L., 1993. "Nonparametric identification and estimation of polychotomous choice models," Journal of Econometrics, Elsevier, vol. 58(1-2), pages 137-168, July.
- Yuichi Kitamura & Jörg Stoye, 2013.
"Nonparametric analysis of random utility models: testing,"
CeMMAP working papers
CWP36/13, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- Stoye, Jörg & Kitamura, Yuichi, 2013. "Nonparametric Analysis of Random Utility Models: Testing," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79753, Verein für Socialpolitik / German Economic Association.
- Yuichi Kitamura & Jorg Stoye, 2013. "Nonparametric Analysis of Random Utility Models: Testing," Cowles Foundation Discussion Papers 1902, Cowles Foundation for Research in Economics, Yale University.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.