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Context-Dependent Heterogeneous Preferences: A Comment on Barseghyan and Molinari (2023)

2023-05-18 · Matias D. Cattaneo, Xinwei Ma, Yusufcan Masatlioglu

Barseghyan and Molinari (2023) give sufficient conditions for semi-nonparametric point identification of parameters of interest in a mixture model of decision-making under risk, allowing for unobserved heterogeneity in utility functions and limited consideration. A key assumption in the model is that the heterogeneity of risk preferences is unobservable but context-independent. In this comment, we build on their insights and present identification results in a setting where the risk preferences are allowed to be context-dependent.

📄 PDF Abstract BibTeX arXiv:2305.10934

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Decision Making

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