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Discrete Choice under Risk with Limited Consideration

Levon Barseghyan, Francesca Molinari, Matthew Thirkettle

arXiv 18 Feb 2019 · Econometrics · publishedAmerican Economic Review (2021) · 45 citations (OpenAlex)

arXiv:1902.06629 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper is concerned with learning decision makers' preferences using data on observed choices from a finite set of risky alternatives. We propose a discrete choice model with unobserved heterogeneity in consideration sets and in standard risk aversion. We obtain sufficient conditions for the model's semi-nonparametric point identification, including in cases where consideration depends on preferences and on some of the exogenous variables. Our method yields an estimator that is easy to compute and is applicable in markets with large choice sets. We illustrate its properties using a dataset on property insurance purchases.

Citation extraction

58
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appendix boundary found by appendix_command · 60% of the source is main text. Read the extracted text to check this.

Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Abaluck2019 APACrefauthors Abaluck, J. \ Adams, A. APACrefauthors \ (2018) 20180.92843100%
2Barseghyan2013 APACrefauthors Barseghyan, L. , Molinari, F. , O'Dono… (2013) 20130.92843100%
3Goeree2008 APACrefauthors Goeree, M S. APACrefauthors \ (2008) 20080.92843100%
4ape:bal18 APACrefauthors Apesteguia, J. \ Ballester, M A. APACrefaut… (2018) 20180.92843100%
5heiss2016inattention APACrefauthors Heiss, F. , McFadden, D. , Winte… (2016) 20160.92843100%
6ho2017impact APACrefauthors Ho, K. , Hogan, J. \ Scott Morton, F. AP… (2017) 20170.84333100%
7kawaguchi2019designing APACrefauthors Kawaguchi, K. , Uetake, K. \ W… (2020) 20200.84333100%
8Barseghyan2011 APACrefauthors Barseghyan, L. , Prince, J. \ Teitelba… (2011) 20110.7373367%
9Cohen2007 APACrefauthors Cohen, A. \ Einav, L. APACrefauthors \ (2007) 20070.7373367%
10manski1977structure APACrefauthors Manski, C F. APACrefauthors \ (1977) 19770.73732100%

Showing the top 10 of 58 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1Risk Preference Types, Limited Consideration, and Welfare1.000175
2Exogenous Consideration and Extended Random Utility0.87462
3Peer Effects in Random Consideration Sets0.64422
4Microeconometrics with Partial Identification0.51121
5Identification and Estimation of Discrete Choice Models with Unobserved Choice Sets0.40511
6Identification and Estimation in Many-to-one Two-sided Matching without Transfers0.40511
7Identification of Incomplete Preferences0.40511
8Attention Overload0.40511
9Context-Dependent Heterogeneous Preferences: A Comment on Barseghyan and Molinari (2023)0.40511
10Robust Counterfactuals in Centralized Schools Choice Systems: Addressing Gender Inequality in STEM Education0.40511