Demand Analysis under Latent Choice Constraints.
Consumer choices are constrained in many markets due to either supply-side rationing or information frictions. Examples include matching markets for schools and colleges; entry-level labour markets; limited brand awareness and inattention in consumer markets; and selective admissions to healthcare s...
| Published in: | Review of Economic Studies Vol. 93; no. 4; pp. 2215 - 2250 |
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| Main Authors: | , |
| Format: | Article |
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Oxford University Press / USA
Jul2026
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| Subjects: | |
| Online Access: | View this record in EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=195161460&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 195161460 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00346527 REM jtl: Review of Economic Studies issn: 00346527 maglogo: N pubinfo: dt: Jul2026 vid: 93 iid: 4 pid: 622 pub: Oxford University Press / USA artinfo: ui: 195161460 10.1093/restud/rdaf093 ppf: 2215 ppct: 35 formats: tig: atl: Demand Analysis under Latent Choice Constraints. aug: au: Agarwal, Nikhil Somaini, Paulo affil: Department of Economics, MIT and NBER, USA Graduate School of Business, Stanford University and NBER, USA su: California Consumer preferences Hospital admission & discharge Consumer behavior Economic demand Instrumental variables (Statistics) Nonparametric estimation Discrete choice models sug: subj: Consumer preferences Hospital admission & discharge Consumer behavior Economic demand California Instrumental variables (Statistics) Nonparametric estimation Discrete choice models keyword: copyrightHolder:Review of Economic Studies Ltd copyrightYear:2026 Demand estimation Dialysis inLanguage:en Matching publisher:Oxford University Press sameAs:https://dx.doi.org/10.1093/restud/rdaf093 copyrightHolder:Review of Economic Studies Ltd copyrightYear:2026 Demand estimation Dialysis inLanguage:en Matching publisher:Oxford University Press sameAs:https://dx.doi.org/10.1093/restud/rdaf093 ab: Consumer choices are constrained in many markets due to either supply-side rationing or information frictions. Examples include matching markets for schools and colleges; entry-level labour markets; limited brand awareness and inattention in consumer markets; and selective admissions to healthcare services. We analyse a general random utility model for consumer preferences that allows for endogenous characteristics and a reduced-form choice-set formation rule that can be derived from models of the examples described above. We show non-parametric identification of this model, propose an estimator, and apply these methods to study admissions in the market for kidney dialysis in California. Our identification results require two sets of instruments, one that only affects consumer preferences and the other that only affects choice sets. We show that both instruments are necessary for identification. These results also suggest tests of choice-set constraints, which we apply to the dialysis market. We find that dialysis facilities are less likely to admit new patients when they have a higher-than-normal caseload and that patients are more likely to travel further when nearby facilities have high caseloads. Finally, we estimate consumers' preferences and facilities' rationing rules using a Gibbs sampler. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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