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Combining stated and revealed preferences

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  • Romuald Meango
  • Marc Henry
  • Ismael Mourifie

Abstract

Can stated preferences inform counterfactual analyses of actual choice? This research proposes a novel approach to researchers who have access to both stated choices in hypothetical scenarios and actual choices, matched or unmatched. The key idea is to use stated choices to identify the distribution of individual unobserved heterogeneity. If this unobserved heterogeneity is the source of endogeneity, the researcher can correct for its influence in a demand function estimation using actual choices and recover causal effects. Bounds on causal effects are derived in the case, where stated choice and actual choices are observed in unmatched data sets. These data combination bounds are of independent interest. We derive a valid bootstrap inference for the bounds and show its good performance in a simulation experiment.

Suggested Citation

  • Romuald Meango & Marc Henry & Ismael Mourifie, 2025. "Combining stated and revealed preferences," Papers 2507.13552, arXiv.org.
    • Handle: RePEc:arx:papers:2507.13552
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    File URL: http://arxiv.org/pdf/2507.13552
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