Not logged in.

Contribution Details

Type Journal Article
Scope Discipline-based scholarship
Title A survey of preference estimation with unobserved choice set heterogeneity
Organization Unit
  • Gregory S. Crawford
  • Rachel Griffith
  • Alessandro Iaria
Item Subtype Original Work
Refereed Yes
Status Published in final form
  • English
Journal Title Journal of Econometrics
Publisher Elsevier
Geographical Reach international
ISSN 0304-4076
Volume 222
Number 1
Page Range 4 - 43
Date 2021
Abstract Text We provide an introduction to the estimation of discrete choice models when choice sets are heterogeneous and unobserved to the econometrician. We survey the two most popular approaches: “integrating over” and “differencing out” unobserved choice sets. Inspired by Chamberlain (1980)’s original idea of constructing sufficient statistics from observed choices, we introduce the term “sufficient set” to refer to any combination of observed choices that lies within the true but unobserved choice set. The concept of sufficient set helps to unify notation and organize our thinking, to map econometric assumptions onto economic models, and to implement both methods in practice.
Digital Object Identifier 10.1016/j.jeconom.2020.07.024
PDF File Download from ZORA
Export BibTeX
Keywords Discrete choice models, Panel data, Unobserved choice sets, Unobserved heterogeneity, Sufficient sets