Intertemporal Aggregation of Choice Data with Consumption Dependent Preferences

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1. Verfasser: Turansick, Christopher
Format: Preprint
Veröffentlicht: 2023
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author Turansick, Christopher
author_facet Turansick, Christopher
contents We study consumption dependence in the context of random utility and repeated choice. We show that, in the presence of consumption dependence, the random utility model is a misspecified model of repeated rational choice. This misspecification leads to biased estimators and failures of standard random utility axioms. We characterize exactly when and by how much the random utility model is misspecified when utilities are consumption dependent.
format Preprint
id arxiv_https___arxiv_org_abs_2302_05806
institution arXiv
publishDate 2023
record_format arxiv
spellingShingle Intertemporal Aggregation of Choice Data with Consumption Dependent Preferences
Turansick, Christopher
Theoretical Economics
We study consumption dependence in the context of random utility and repeated choice. We show that, in the presence of consumption dependence, the random utility model is a misspecified model of repeated rational choice. This misspecification leads to biased estimators and failures of standard random utility axioms. We characterize exactly when and by how much the random utility model is misspecified when utilities are consumption dependent.
title Intertemporal Aggregation of Choice Data with Consumption Dependent Preferences
topic Theoretical Economics
url https://arxiv.org/abs/2302.05806