Mixture Models of Choice Under Risk

TY - JOUR

T1 - Mixture Models of Choice Under Risk

AU - Conte, A.

AU - Hey, J.D.

AU - Moffatt, P.G.

N1 - M1 - 1

PY - 2011/5

Y1 - 2011/5

N2 - This paper is concerned with estimating preference functionals for choice under risk from the choice behaviour of individuals. We note that there is heterogeneity in behaviour between individuals and within individuals. By ‘heterogeneity between individuals’ we mean that people are different, in terms of both their preference functionals and their parameters for these functionals. By ‘heterogeneity within individuals’ we mean that the behaviour may be different even by the same individual for the same choice problem. We propose methods of taking into account all forms of heterogeneity, concentrating particularly on using a Mixture Model to capture the heterogeneity of preference functionals.

AB - This paper is concerned with estimating preference functionals for choice under risk from the choice behaviour of individuals. We note that there is heterogeneity in behaviour between individuals and within individuals. By ‘heterogeneity between individuals’ we mean that people are different, in terms of both their preference functionals and their parameters for these functionals. By ‘heterogeneity within individuals’ we mean that the behaviour may be different even by the same individual for the same choice problem. We propose methods of taking into account all forms of heterogeneity, concentrating particularly on using a Mixture Model to capture the heterogeneity of preference functionals.

UR - http://www.scopus.com/inward/record.url?scp=79952991414&partnerID=8YFLogxK

U2 - 10.1016/j.jeconom.2009.10.011

DO - 10.1016/j.jeconom.2009.10.011

M3 - Article

SN - 0304-4076

VL - 162

SP - 79

EP - 88

JO - Journal of Econometrics

JF - Journal of Econometrics

IS - 1

ER -