Estimating Preference Parameters from Strictly Concave Budget Restrictions (with Holger Gerhardt)
We propose a novel experimental method to elicit preference parameters: choices subject to strictly concave budget restrictions. We aim to improve upon the informational content of commonly used methods such as choices subject to linear budget restrictions in two ways: (i) by reducing the number of corner allocations and (ii) by enlarging the range of estimable parameter values. An online study on risk and time preferences confirms the benefits of our method. Corner allocations are drastically reduced, which facilitates estimation on the individual level, and a richer distribution of preference parameters compared to using linear budget restrictions is elicited.
Date: 24 November 2023, 12:45
Venue: Manor Road Building, Manor Road OX1 3UQ
Venue Details: Seminar Room G or https://zoom.us/j/96595245637
Speaker: Rafael Suchy (University of Oxford)
Organising department: Department of Economics
Part of: Student Research Workshop in Micro Theory
Booking required?: Not required
Audience: Members of the University only
Editor: Shreyasi Banerjee