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Journal Articles
October 2008
Article
Heterogeneity and the nonparametric analysis of consumer choice: conditions for invertibility
Type: Journal Articles
Volume, issue, pages: Vol. 75, No. 4, pp. 1069-1080

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This paper considers structural nonparametric random utility models for continuous choice variables. It provides suffcient conditions on random preferences to yield reduced- form systems of nonparametric stochastic demand functions that allow global invertibility between demands and random utility components. Invertibility is essential for global identification of structural consumer demand models, for the existence of well-specified probability models of choice and for the nonparametric analysis of revealed stochastic preference.

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