Kroft, Kory; Leal-Vizcaíno, René; Notowidigdo, Matthew J. - In: Economic theory 74 (2022) 3, pp. 923-946
This paper highlights a previously unnoticed property of commonly-used discrete choice models, which is that they feature parallel demand curves. Specifically, we show that in additive random utility models, inverse aggregate demand curves shift in parallel with respect to variety if and only if...
