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Behavioral and Descriptive Forms of Choice Models

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  • Ariel Pakes

Abstract

Empirical work on choice models, especially work on relatively new topics or data sets, often starts with descriptive, or what is often colloquially referred to as "reduced form", results. Our descriptive form formalizes this process. It is derived from the underlying behavioral model, has an interpretation in terms of fit, and can sometimes be used to quantify biases in agents' expectations. We consider estimators for the descriptive form of discrete choice models with (and without) interacting agents that take account of approximation errors as well as unobservable sources of endogeneity. We conclude with an investigation of the descriptive form of two period entry models.

Suggested Citation

  • Ariel Pakes, 2014. "Behavioral and Descriptive Forms of Choice Models," NBER Working Papers 20022, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:20022 Note: IO PR
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    1. repec:eee:indorg:v:53:y:2017:i:c:p:241-266 is not listed on IDEAS

    More about this item

    JEL classification:

    • B4 - Schools of Economic Thought and Methodology - - Economic Methodology
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • C57 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Econometrics of Games and Auctions

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