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Generalized Random Utility Models with Multiple Types

Author

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  • Azari Soufiani, Hossein
  • Diao, Hansheng
  • Lai, Zhenyu
  • Parkes, David C.

Abstract

We propose a model for demand estimation in multi-agent, differentiated product settings and present an estimation algorithm that uses reversible jump MCMC techniques to classify agents' types. Our model extends the popular setup in Berry, Levinsohn and Pakes (1995) to allow for the data-driven classification of agents' types using agent-level data. We focus on applications involving data on agents' ranking over alternatives, and present theoretical conditions that establish the identifiability of the model and uni-modality of the likelihood/posterior. Results on both real and simulated data provide support for the scalability of our approach.

Suggested Citation

  • Azari Soufiani, Hossein & Diao, Hansheng & Lai, Zhenyu & Parkes, David C., 2013. "Generalized Random Utility Models with Multiple Types," Scholarly Articles 12363923, Harvard University Department of Economics.
    • Handle: RePEc:hrv:faseco:12363923
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    References listed on IDEAS

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    1. Federico Fioravanti & Iyad Rahwan & Fernando Tohmé, 2022. "Properties of Aggregation Operators Relevant for Ethical Decision Making in Artificial Intelligence," Working Papers 177, Red Nacional de Investigadores en Economía (RedNIE).
    2. Federico Fioravanti & Iyad Rahwan & Fernando Abel Tohm'e, 2022. "Classes of Aggregation Rules for Ethical Decision Making in Automated Systems," Papers 2206.05160, arXiv.org, revised Jun 2023.

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