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A Note on "A survey of preference estimation with unobserved choice set heterogeneity" by Gregory S. Crawford, Rachel Griffith, and Alessandro Iaria

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  • C. Angelo Guevara

Abstract

Crawford's et al. (2021) article on estimation of discrete choice models with unobserved or latent consideration sets, presents a unified framework to address the problem in practice by using "sufficient sets", defined as a combination of past observed choices. The proposed approach is sustained in a re-interpretation of a consistency result by McFadden (1978) for the problem of sampling of alternatives, but the usage of that result in Crawford et al. (2021) is imprecise in an important matter. It is stated that consistency would be attained if any subset of the true consideration set is used for estimation, but McFadden (1978) shows that, in general, one needs to do a sampling correction that depends on the protocol used to draw the choice set. This note derives the sampling correction that is required when the choice set for estimation is built from past choices. Then, it formalizes the conditions under which such correction would fulfill the uniform condition property and can therefore be ignored when building practical estimators, such as the ones analyzed by Crawford et al. (2021).

Suggested Citation

  • C. Angelo Guevara, 2022. "A Note on "A survey of preference estimation with unobserved choice set heterogeneity" by Gregory S. Crawford, Rachel Griffith, and Alessandro Iaria," Papers 2205.00852, arXiv.org.
    • Handle: RePEc:arx:papers:2205.00852
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    References listed on IDEAS

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    1. Crawford, Gregory S. & Griffith, Rachel & Iaria, Alessandro, 2021. "A survey of preference estimation with unobserved choice set heterogeneity," Journal of Econometrics, Elsevier, vol. 222(1), pages 4-43.
    2. Guevara, C. Angelo & Ben-Akiva, Moshe E., 2013. "Sampling of alternatives in Logit Mixture models," Transportation Research Part B: Methodological, Elsevier, vol. 58(C), pages 185-198.
    3. Guevara, C. Angelo & Ben-Akiva, Moshe E., 2013. "Sampling of alternatives in Multivariate Extreme Value (MEV) models," Transportation Research Part B: Methodological, Elsevier, vol. 48(C), pages 31-52.
    4. C. Angelo Guevara & Caspar G. Chorus & Moshe E. Ben-Akiva, 2016. "Sampling of Alternatives in Random Regret Minimization Models," Transportation Science, INFORMS, vol. 50(1), pages 306-321, February.
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