The Random Coefficients Logit Model is Identified

16 Pages Posted: 3 May 2009  

Patrick Bajari

University of Michigan at Ann Arbor - Department of Economics; National Bureau of Economic Research (NBER)

Jeremy T. Fox

University of Michigan

Kyoo il Kim

University of Minnesota - Twin Cities

Stephen P Ryan

MIT; NBER

Date Written: April 2009

Abstract

The random coefficients, multinomial choice logit model has been widely used in empirical choice analysis for the last 30 years. We are the first to prove that the distribution of random coefficients in this model is nonparametrically identified. Our approach exploits the structure of the logit model, and so requires no monotonicity assumptions and requires variation in product characteristics within only an infinitesimally small open set. Our identification argument is constructive and may be applied to other choice models with random coefficients.

Suggested Citation

Bajari, Patrick and Fox, Jeremy T. and Kim, Kyoo il and Ryan, Stephen P, The Random Coefficients Logit Model is Identified (April 2009). NBER Working Paper No. w14934. Available at SSRN: https://ssrn.com/abstract=1397932

Patrick Bajari (Contact Author)

University of Michigan at Ann Arbor - Department of Economics ( email )

611 Tappan Street
Ann Arbor, MI 48109-1220
United States
734-763-5319 (Phone)

HOME PAGE: http://www-personal.umich.edu/~bajari/

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Jeremy T. Fox

University of Michigan ( email )

611 Tappan St.
Ann Arbor, MI 48104
United States
734 330-2854 (Phone)

Kyoo il Kim

University of Minnesota - Twin Cities ( email )

420 Delaware St. SE
Minneapolis, MN 55455
United States

Stephen P Ryan

MIT ( email )

50 Memorial Drive
E52-391
Cambridge, MA 02142
United States

NBER ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
47
Abstract Views
574
PlumX