Heterogeneous Choice Sets and Preferences

Understand

We propose a robust method of discrete choice analysis when agents' choice sets are unobserved.

• Our core model assumes nothing about agents' choice sets apart from their minimum size.
• Importantly, it leaves unrestricted the dependence, conditional on observables, between choice sets and preferences.
• We first characterize the sharp identification region of the model's parameters by a finite set of conditional moment inequalities.