Technical University of Denmark
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Institutional Affiliation: Technical University of Denmark
Information about this author at RePEc
NBER Working Papers and Publications
|April 2012||Choice Probability Generating Functions|
with , : w17970
This paper considers discrete choice, with choice probabilities coming from maximization of preferences from a random utility field perturbed by additive location shifters (ARUM). Any ARUM can be characterized by a choice-probability generating function (CPGF) whose gradient gives the choice probabilities, and every CPGF is consistent with an ARUM. We relate CPGF to multivariate extreme value distributions, and review and extend methods for constructing CPGF for applications.
Published: Mogens Fosgerau & Daniel McFadden & Michel Bierlaire, 2013. "Choice probability generating functions," Journal of Choice Modelling, vol 8(), pages 1-18.
|March 2012||A theory of the perturbed consumer with general budgets|
with : w17953
We consider demand systems for utility-maximizing consumers facing general budget constraints whose utilities are perturbed by additive linear shifts in marginal utilities. Budgets are required to be compact but are not required to be convex. We define demand generating functions (DGF) whose subgradients with respect to these perturbations are convex hulls of the utility-maximizing demands. We give necessary as well as sufficient conditions for DGF to be consistent with utility maximization, and establish under quite general conditions that utility-maximizing demands are almost everywhere single-valued and smooth in their arguments. We also give sufficient conditions for integrability of perturbed demand. Our analysis provides a foundation for applications of consumer theory to problems wi...