48 Pages Posted: 9 Mar 2017
Date Written: March 6, 2017
In this paper we describe an equivalence between random utility discrete-choice models and two-sided matching models with imperfectly transferable utility, and we exploit its consequences. Based on it, we suggest new approaches for estimation and identification of non-additive random utility models (NARUM), in which the utility shocks do not affect decision-makers’ utilities in an additive manner. The estimation algorithms and procedures we describe are inspired by those in the matching literature. A noteworthy feature of our algorithms is that they yield the point estimate when the model is point identified, and yield the upper and lower bounds on the parameters under partial identification.
Keywords: Non-Additive Random Utility Models, Two-Sided Matching, Deferred Acceptance, Partial Identification
JEL Classification: C51, C60
Suggested Citation: Suggested Citation
Bonnet, Odran and Galichon, Alfred and Shum, Matthew, Yogurts Choose Consumers? Identification of Random Utility Models via Two-Sided Matching (March 6, 2017). Available at SSRN: https://ssrn.com/abstract=2928876