Choice in the Presence of Experts

This paper considers the micro-econometric analysis of discrete choice problems in which the choice set is strategically pre-selected by a third-party advisor or expert. It delineates measures of efficiency loss arising from (i) the sets of relevant choice attributes being imperfectly aligned between ultimate beneciary of the choice outcome and third-party expert, and (ii) pre-selected choice-sets being uniform across ultimate beneciaries who differ in their subjective evaluations of relevant choice attributes. And it identies inconsistencies in estimation when strategically pre-selected choice sets are treated as exogenous. Some applications to choice in healthcare and nancial services markets are sketched.