Discrete Choice under Risk with Limited Consideration

Levon Barseghyan, Francesca Molinari and Matthew Thirkettle

Papers from arXiv.org

Abstract: This paper is concerned with learning decision makers' preferences using data on observed choices from a finite set of risky alternatives. We propose a discrete choice model with unobserved heterogeneity in consideration sets and in standard risk aversion. We obtain sufficient conditions for the model's semi-nonparametric point identification, including in cases where consideration depends on preferences and on some of the exogenous variables. Our method yields an estimator that is easy to compute and is applicable in markets with large choice sets. We illustrate its properties using a dataset on property insurance purchases.

Date: 2019-02, Revised 2021-01
New Economics Papers: this item is included in nep-dcm and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

Downloads: (external link)
http://arxiv.org/pdf/1902.06629 Latest version (application/pdf)

Related works:
Journal Article: Discrete Choice under Risk with Limited Consideration (2021)
Working Paper: Discrete choice under risk with limited consideration (2020)
Working Paper: Discrete choice under risk with limited consideration (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:1902.06629

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().