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Choice in the Presence of Experts

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  • Walter Beckert

    (Department of Economics, Mathematics & Statistics, Birkbeck)

Abstract

This paper considers the micro-econometric analysis of discrete choice problems in which the choice set is strategically pre-selected by a third-party advisor or expert. It delineates measures of efficiency loss arising from (i) the sets of relevant choice attributes being imperfectly aligned between ultimate bene ciary of the choice outcome and third-party expert, and (ii) pre-selected choice-sets being uniform across ultimate bene ciaries who differ in their subjective evaluations of relevant choice attributes. And it identi es inconsistencies in estimation when strategically pre-selected choice sets are treated as exogenous. Some applications to choice in healthcare and financial services markets are sketched.

Suggested Citation

  • Walter Beckert, 2015. "Choice in the Presence of Experts," Birkbeck Working Papers in Economics and Finance 1503, Birkbeck, Department of Economics, Mathematics & Statistics.
    • Handle: RePEc:bbk:bbkefp:1503
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    File URL: https://eprints.bbk.ac.uk/id/eprint/15276
    File Function: First version, 2015
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    References listed on IDEAS

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    Cited by:

    1. Martin Gaynor & Carol Propper & Stephan Seiler, 2016. "Free to Choose? Reform, Choice, and Consideration Sets in the English National Health Service," American Economic Review, American Economic Association, vol. 106(11), pages 3521-3557, November.

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    More about this item

    Keywords

    Discrete choice; expert; endogenous choice sets.;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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