Tools
Tools
Reynaert, Mathias
ORCID: https://orcid.org/0000-0002-2886-2548, Xu, Wenxuan and Zhao, Hanlin
(2024)
Estimating Choice Models with Unobserved Expectations over Attributes.
TSE Working Paper, n. 24-1571, Toulouse
Preview |
Text
Download (1MB) | Preview |
Abstract
Agents often make choices based on expectations about uncertain attributes, yet the information used to form these expectations is typically unobserved by researchers.
We develop two methods to estimate discrete choice models in which agents form expectations using heterogeneous and unobserved information sets. Preferences are point-identified by approximating the latent information structure with a finite mixture of information types, or set-identified with partial information about expectations. Both approaches apply to individual- and market-level data with minimal assumptions on expectation formation. Applications to firms’ exporting decisions and consumers’ automobile purchases show that accounting for unobserved information substantially
affects estimated preferences.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Language: | English |
| Date: | September 2024 |
| Place of Publication: | Toulouse |
| Uncontrolled Keywords: | Discrete choice, unobserved information, mixture model, set identification. |
| JEL Classification: | C5 - Econometric Modeling C8 - Data Collection and Data Estimation Methodology; Computer Programs D8 - Information, Knowledge, and Uncertainty |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Institution: | Université Toulouse Capitole |
| Site: | UT1 |
| Date Deposited: | 16 Sep 2024 07:10 |
| Last Modified: | 17 Mar 2026 07:59 |
| OAI Identifier: | oai:tse-fr.eu:129713 |
| URI: | https://publications.ut-capitole.fr/id/eprint/49697 |
