Discrete Choice under Risk with Limited Consideration

• 成果类型: Article
• 署名作者: Barseghyan, Levon; Molinari, Francesca; Thirkettle, Matthew
• 署名单位: Cornell University; Rice University
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20190253
• 发表日期: 2021
• 页码: 1972-2006
• 关键词: consideration sets; preferences; models; Heterogeneity; selection; inertia; choose

摘要

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.