Identification of Incomplete Preferences

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• github.com/ArieBeresteanu/Identification-of-Incomplete-Preferences
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Abstract

We provide a sharp identification region for discrete choice models where consumers' preferences are not necessarily complete even if only aggregate choice data is available. Behavior is modeled using an upper and a lower utility for each alternative so that non-comparability can arise. The identification region places intuitive bounds on the probability distribution of upper and lower utilities. We show that the existence of an instrumental variable can be used to reject the hypothesis that the preferences of all consumers are complete. We apply our methods to data from the 2018 mid-term elections in Ohio.

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