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Combinatorial Discrete Choice

Author

Listed:
  • Fabian Eckert

    (Yale University)

  • Costas Arkolakis

    (Yale University)

Abstract

Combinatorial problems are prevalent in economics but the large dimensionality of potential solutions substantially limits the scope of their applications. We define and characterize a general class that we term combinatorial discrete choice problems and show that it incorporates existing problems in economics and engineering. We prove that intuitive sufficient conditions guarantee the existence of simple recursive procedures that can be used to identify the global maximum. We propose such an algorithm and show how it can be used to revisit problems whose computation was deemed infeasible before. We finally discuss results for a class of games characterized by these sufficient conditions.

Suggested Citation

  • Fabian Eckert & Costas Arkolakis, 2017. "Combinatorial Discrete Choice," 2017 Meeting Papers 249, Society for Economic Dynamics.
  • Handle: RePEc:red:sed017:249
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    File URL: https://economicdynamics.org/meetpapers/2017/paper_249.pdf
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    References listed on IDEAS

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    1. repec:oup:qjecon:v:132:y:2017:i:1:p:157-209. is not listed on IDEAS
    2. Alonso de Gortari & Pol Antras, 2016. "On the Geography of Global Value Chains," 2016 Meeting Papers 1252, Society for Economic Dynamics.
    3. Pol Antràs & Teresa C. Fort & Felix Tintelnot, 2017. "The Margins of Global Sourcing: Theory and Evidence from US Firms," American Economic Review, American Economic Association, vol. 107(9), pages 2514-2564, September.
    4. Gloria Sheu & Andres Zahler & Eduardo Morales, 2016. "Extended Gravity," 2016 Meeting Papers 1565, Society for Economic Dynamics.
    5. Felix Tintelnot, 2017. "Global Production with Export Platforms," The Quarterly Journal of Economics, Oxford University Press, vol. 132(1), pages 157-209.
    6. Acemoglu, Daron & Jensen, Martin Kaae, 2013. "Aggregate comparative statics," Games and Economic Behavior, Elsevier, vol. 81(C), pages 27-49.
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    Cited by:

    1. Magne Mogstad & Emmanuel Dhyne & Ayumu Kikkawa & Felix Tintelnot, 2017. "Trade and Domestic Production Networks," 2017 Meeting Papers 381, Society for Economic Dynamics.

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