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Approximating Choice Data by Discrete Choice Models

Haoge Chang, Yusuke Narita, Kota Saito

arXiv 4 May 2022 · Theoretical Economics · 1 citations (OpenAlex)

arXiv:2205.01882 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We obtain a necessary and sufficient condition under which random-coefficient discrete choice models, such as mixed-logit models, are rich enough to approximate any nonparametric random utility models arbitrarily well across choice sets. The condition turns out to be the affine-independence of the set of characteristic vectors. When the condition fails, resulting in some random utility models that cannot be closely approximated, we identify preferences and substitution patterns that are challenging to approximate accurately. We also propose algorithms to quantify the magnitude of approximation errors.

Citation extraction

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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
1McFadden, D. and K. Train (2000) Mixed MNL Models for Discrete Response0.96510490%
2Barron, A. R., A. Cohen, W. Dahmen, and R. A. DeVore (2008) Approximation and Learning by Greedy Algorithms0.7373367%
3Block, H. D. and J. Marschak (1960) Random Orderings and Stochastic Theories of Responses0.7373367%
4Dempster, A. P., N. M. Laird, and D. B. Rubin (1977) Maximum Likelihood from Incomplete Data via the EM Algorithm0.7373367%
5Norets, A. and S. Takahashi (2013) On the Surjectivity of the Mapping between Utilities and Choice Probabilities0.7373367%
6Thomson, C. J. and S. J. Crooke (1991) Results of the Southern California Sportfish Economic Survey0.7373367%
7Allen, R. and J. Rehbeck (2020) Hicksian Complementarity and Perturbed Utility Models0.64422100%
8Chen, X (2007) Large Sample Sieve Estimation of Semi-nonparametric Models0.64422100%
9Horan, S. and A. Adam (2023) Slutsky Patterns of Substitution in Discrete Choice, Working Paper0.64422100%
10Herriges, J. A. and C. L. Kling (1999) Nonlinear Income Effects in Random Utility Models0.5113233%

Showing the top 10 of 57 scored citations.