How McFadden Met Rockafellar and Learnt to Do More With Less

Jesper Riis-Vestergaard Sørensen; Mogens Fosgerau

doi:10.2139/ssrn.3581570

How McFadden Met Rockafellar and Learnt to Do More With Less

Jesper Riis-Vestergaard Sørensen, Mogens Fosgerau

Økonomisk Institut

Publikation: Working paper › Forskning

Abstract

We study the additive random utility model of discrete choice under minimal assumptions. We make no assumptions regarding the distribution of random utility components or the functional form of systematic utility components. Exploiting the power of convex analysis, we are nevertheless able to generalize a range of important results. We characterize demand with a generalized Williams-Daly-Zachary theorem. A similarly generalized version of Hotz-Miller inversion yields constructive partial identification of systematic utilities. Estimators based on our partial identification result remain well defined in the presence of zeros in demand. We also provide necessary and sufficient conditions for point identification.

Originalsprog	Engelsk
Antal sider	29
DOI	https://doi.org/10.2139/ssrn.3581570
Status	Udgivet - 30 apr. 2020

Navn	University of Copenhagen. Institute of Economics. Discussion Papers (Online)
Nummer	20-01
ISSN	1601-2461

Emneord

Det Samfundsvidenskabelige Fakultet
Additive random utility model
Discrete choice
Convex duality
Demand inversion
Partial identification
C25
C6
D11

Adgang til dokumentet

10.2139/ssrn.3581570

https://www.economics.ku.dk/research/publications/wp/dp-2020/2001.pdf

Andre filer og links

https://www.mendeley.com/catalogue/7c4a7c18-a4f7-36c3-9896-d55df16ad08d/

Citationsformater

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