Odran Bonnet, Alfred Galichon, Yu-Wei Hsieh, Keith O'Hara, Matt Shum
arXiv 26 Nov 2021 · Econometrics · publishedThe Review of Economic Studies (2022) · 6 citations (OpenAlex)
arXiv:2111.13744 · PDF · DOI · OpenAlex · Extracted main text
The problem of demand inversion - a crucial step in the estimation of random utility discrete-choice models - is equivalent to the determination of stable outcomes in two-sided matching models. This equivalence applies to random utility models that are not necessarily additive, smooth, nor even invertible. Based on this equivalence, algorithms for the determination of stable matchings provide effective computational methods for estimating these models. For non-invertible models, the identified set of utility vectors is a lattice, and the matching algorithms recover sharp upper and lower bounds on the utilities. Our matching approach facilitates estimation of models that were previously difficult to estimate, such as the pure characteristics model. An empirical application to voting data from the 1999 European Parliament elections illustrates the good performance of our matching-based demand inversion algorithms in practice.
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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.
| Reference | Intensity | Mentions | Sections | Main text | |
|---|---|---|---|---|---|
| 1 | Berry, Levinsohn, and Pakes (1995) Automobile prices in market equilibrium | 1.000 | 5 | 4 | 100% |
| 2 | Crawford and Knoer (1981) Job matching with heterogeneous firms and workers | 1.000 | 5 | 3 | 100% |
| 3 | Shapley and Shubik (1971) The assignment game I: The core | 1.000 | 5 | 3 | 100% |
| 4 | Berry and Pakes (2007) The pure characteristics demand model | 0.950 | 7 | 4 | 86% |
| 5 | Kelso and Crawford (1982) Job matching, coalition formation, and gross substitutes | 0.928 | 5 | 4 | 80% |
| 6 | Berry, Gandhi, and Haile (2013) Connected substitutes and invertibility of demand | 0.843 | 4 | 3 | 75% |
| 7 | Pang, Su, and Lee (2015) A constructive approach to estimating pure characteristics demand models with pricing | 0.843 | 4 | 3 | 75% |
| 8 | Berry (1994) Estimating discrete-choice models of product differentiation | 0.811 | 4 | 2 | 100% |
| 9 | Roth and Sotomayor (1992) Two-sided matching: A study in game-theoretic modeling and analysis | 0.811 | 4 | 2 | 100% |
| 10 | Dubé, Fox, and Su (2012) Improving the numerical performance of static and dynamic aggregate discrete choice random coefficients demand estimation | 0.794 | 6 | 3 | 50% |
Showing the top 10 of 82 scored citations.
arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.
| Citing paper | Intensity | Mentions | Sections | |
|---|---|---|---|---|
| 1 | An econometrician's guide to optimal transport | 0.511 | 2 | 1 |
| 2 | Fast and simple inner-loop algorithms of static / dynamic BLP estimations | 0.405 | 1 | 1 |