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Dworczak, Kominers, and Akbarpour (2021) study when certain market structures are optimal in the presence of heterogeneous preferences. A key assumption to apply the results is that the social planner knows the joint distribution of the value of the good and marginal value of money. We show that...
Persistent link: https://www.econbiz.de/10014078070
Many theoretical models of stochastic choice are characterized by availability variation. Instead, most stochastic choice datasets have information on attribute values that vary across decision problems. This paper uses attribute variation to characterize a framework that encompasses existing...
Persistent link: https://www.econbiz.de/10012903045
This paper studies aggregate complementarity without price or income variation. We show that for a class of utility functions, variation in non-price observables allows one to recover a measure of complementarity similar to Hicksian complementarity. In addition, the entire Slutsky matrix can be...
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Individual choices are often inconsistent with economic theories, which has motivated a variety of ways to measure how far choices are from a given theory. Recent work has investigated the correlation between measures of rationality and observable information such as education or income. This...
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Applied research often tolerates misspecification in order to reach informative conclusions. We focus on how the degree of misspecification varies with the level of aggregation of data for quasilinear utility models. We present aggregation results formalizing that the model cannot get worse when...
Persistent link: https://www.econbiz.de/10012132410
This paper studies partial identi cation of latent complementarity in an optimizing model with two goods and binary quantities of each good (buy / don't buy). We provide simple bounds on the fraction of individuals for whom goods are complements/substitutes. Despite using only involve marginal...
Persistent link: https://www.econbiz.de/10012851254