The confounding effects of consumer heterogeneity on model-based inference of attribute non-attendance

Hong il Yoo ()
Additional contact information
Hong il Yoo: University of New South Wales

No 2012-47, Discussion Papers from School of Economics, The University of New South Wales

Abstract: Several empirical studies conclude that a majority of economic agents ignore some of observed product attributes when choosing among discrete alternatives. Many of these ndings are based on latent class logit with partially constrained support points wherein the share of each point is interpreted as the probability of ignoring particular attribute(s). We note that because the logit kernel is mixed over these points to approximate unmodeled interpersonal taste variation during the estimation stage, the interpretation of estimated shares is necessarily ambiguous. Using simulated examples, we explain why common forms of unobserved consumer heterogeneity can be confounded with attribute non-attendance.

Keywords: attribute non-attendance; gmnl; latent class; consumer heterogeneity; mixed logit; information processing rule (search for similar items in EconPapers)
JEL-codes: C25 C52 C81 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2012-11
New Economics Papers: this item is included in nep-dcm and nep-mkt
References: Add references at CitEc
Citations:

Downloads: (external link)
http://research.economics.unsw.edu.au/RePEc/papers/2012-47.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 503 Service Unavailable: Back-end server is at capacity

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:swe:wpaper:2012-47

Access Statistics for this paper

More papers in Discussion Papers from School of Economics, The University of New South Wales Contact information at EDIRC.
Bibliographic data for series maintained by Hongyi Li ().