We investigate stochastic choice when only the average and not the entire distribution of choices is observable, focusing attention on the popular Luce model. Choice is pathindependent if it is recursive,in the sense that choosing from a menu can be broken up into choosing from smaller...

We model a decision maker who anticipates being tempted but is also uncertain about what is normatively best. Our model is an extended version of Gul and Pesendorfer's (2001) with three time periods: in the ex ante period, the agent chooses a set of menus; in the interim period, she chooses a...

In this paper, we study methods of inferring a decision maker's true preference relation when observed choice data reveal a nontransitive preference relation due to choice mistakes. We propose some sensible properties of such methods and show that these properties characterize a unique rule of...

We investigate the relationship between the individual and household indirect utility functions in the context of a collective household model. Our analysis produces new results that explain how the rule governing the distribution of resources among household members is related to the...

Interaction, the act of mutual influence, is an essential part of daily life and economic decisions. This paper presents an individual decision procedure for interacting individuals. According to our model, individuals seek influence from each other for those issues that they cannot solve on...

We develop a method for distributional regression of joint multidimensional choice on nonlinear prices departing from a household model of labor supply that focuses on tax policy effects. Our distribution functions are derived under minimal theoretical assumptions and have a simple structure. We...

We explore the implications of heterogeneity in the elasticity of taxable income (ETI) for tax-reform based estimation methods. We theoretically show that existing methods yield elasticities that are biased and lack policy relevance. We illustrate the empirical importance of our theoretical...

This study constructs a sequential consumer search model with differentiated products in which some consumers search for a single product while the others search for multiple products. When the mass of consumers who demand one of the products decreases, the price for one product decreases while...

Resource shares, defined as the fraction of total household spending going to each person in a household, are important for assessing individual material well-being, inequality and poverty. They are difficult to identify because consumption is measured typically at the household level, and many...