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Persistent link: https://www.econbiz.de/10012125114
This paper provides shape restrictions for the structural estimation of demand functions derived from a surplus-based model describing the behavior of a population of consumers. I first derive the restrictions that this model imposes on the implied demand function and its inverse. Then, I show...
Persistent link: https://www.econbiz.de/10012847122
We consider demand systems for utility-maximizing consumers facing general budget constraints whose utilities are perturbed by additive linear shifts in marginal utilities. Budgets are required to be compact but are not required to be convex. We define demand generating functions (DGF) whose...
Persistent link: https://www.econbiz.de/10013108254
Persistent link: https://www.econbiz.de/10009530148
Persistent link: https://www.econbiz.de/10011751192
We consider demand systems for utility-maximizing consumers facing general budget constraints whose utilities are perturbed by additive linear shifts in marginal utilities. Budgets are required to be compact but are not required to be convex. We define demand generating functions (DGF) whose...
Persistent link: https://www.econbiz.de/10012460706
This paper establishes a general equivalence between discrete choice and rational inattention models. Matejka and McKay (2015) showed that when information costs are modelled using the Shannon entropy, the choice probabilities in the rational inattention (RI) model take the multinomial logit...
Persistent link: https://www.econbiz.de/10012854838
This paper sets up a rational inattention model for the choice of departure time for a traveler facing random travel time. The traveler chooses how much information to acquire about the travel time out-come before choosing departure time. This reduces the cost of travel time variability compared...
Persistent link: https://www.econbiz.de/10012944950