"Bundle, Hendel, and Beyond: (Un)common Properties of Discrete Choice Models with Multi-purchasing" (with Xinyi Xu), 2019.
Abstract: While traditional discrete choice models assume that economic agents choose only one option among the alternatives, more recently, discrete choice models that relax the single-unit assumption have been developed and widely used to analyze
buyers' multi-purchasing behavior, especially in empirical contexts. We present and analyze two modeling frameworks of multi-purchasing discrete choice that contain as special cases the traditional binary and multinomial choice models and important empirical models, such as Gentzkow (2007) and Fan (2013). We analyze the the models with unspeci ed, general distribution of randomness and focus on a set of fundamental theoretical properties, including monotonicity, cross product effects and their relationship to traditional single-choice models. We discuss in detail the implications for supply-side modeling and identification and estimation in empirical contexts.
Abstract: While traditional discrete choice models assume that economic agents choose only one option among the alternatives, more recently, discrete choice models that relax the single-unit assumption have been developed and widely used to analyze
buyers' multi-purchasing behavior, especially in empirical contexts. We present and analyze two modeling frameworks of multi-purchasing discrete choice that contain as special cases the traditional binary and multinomial choice models and important empirical models, such as Gentzkow (2007) and Fan (2013). We analyze the the models with unspeci ed, general distribution of randomness and focus on a set of fundamental theoretical properties, including monotonicity, cross product effects and their relationship to traditional single-choice models. We discuss in detail the implications for supply-side modeling and identification and estimation in empirical contexts.