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Multinomial choice with social interactions

Author: William A Brock; Steven N Durlauf; National Bureau of Economic Research.
Publisher: Cambridge, Mass. : National Bureau of Economic Research, ©2003.
Series: NBER technical working paper series, no. 288.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
Abstract: This paper develops a model of individual decisionmaking in the presence of social interactions when the number of available choices is finite. We show how a multinomial logit model framework may be used to model such decisions in a way that permits a tight integration of theory and econometrics. Conditions are given under which aggregate choice behavior in a population exhibits multiple self-consistent  Read more...
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Additional Physical Format: Print version:
Brock, William A.
Multinomial choice with social interactions.
Cambridge, Mass. : National Bureau of Economic Research, ©2003
(OCoLC)51946289
Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: William A Brock; Steven N Durlauf; National Bureau of Economic Research.
OCLC Number: 647103632
Reproduction Notes: Electronic reproduction. [S.l.] : HathiTrust Digital Library, 2010. MiAaHDL
Description: 1 online resource (44 pages).
Details: Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002.
Series Title: NBER technical working paper series, no. 288.
Responsibility: William A. Brock, Steven N. Durlauf.

Abstract:

Abstract: This paper develops a model of individual decisionmaking in the presence of social interactions when the number of available choices is finite. We show how a multinomial logit model framework may be used to model such decisions in a way that permits a tight integration of theory and econometrics. Conditions are given under which aggregate choice behavior in a population exhibits multiple self-consistent equilibria. An econometric version of the model is shown to be identified under relatively weka conditions. That analysis is extended to allow for general error distributions and some preliminary ways to account for the endogeneity of group memberships are developed.

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