Random Choice and Differentiat ion
Coauthor: Junnan He
Abstract:
Differenti ation determines the comparability of different options and can be crucial to predict how choice architecture elicits behavioral responses. To facilit ate the measurement of differentiation\, we develop a flexible yet tractabl e model of random choice in a multi-attribute setting. We show the analyst can separately identify vertical and horizontal differentiation from binary comparison data alone. We characterize the binary choice rules that arise from our model using four easily understood postulates. In multinomial choi ce\, we show that the intersection of our model with the classic random uti lity framework yields random coefficients with an elliptical distribution. We provide applications to consumer demand with differentiated products and to measuring the complexity faced by an agent in individual decision-makin g problems.
[buttons][button link_text="View paper" link_url="https:/ /bpb-us-e2.wpmucdn.com/sites.wustl.edu/dist/8/2077/files/2024/08/2024-07-Di fferentiation-Manuscript.pdf"] [/buttons]
Organized by: Li Hao
LOCATION:IONA 533 GEO:49.260872;-123.113952 URL;VALUE=URI:https://economics.ubc.ca/events/event/paulo-natenzon-washingt on-university-in-saint-louis-micro-theory-seminar/ END:VEVENT BEGIN:VTIMEZONE TZID:America/Vancouver BEGIN:STANDARD TZOFFSETFROM:-0700 TZOFFSETTO:-0800 DTSTART:20251102T090000 TZNAME:PST END:STANDARD END:VTIMEZONE END:VCALENDAR