Analyzing observed heterogeneity in preferences: a semiparametric estimation approach
Paul Koster, Hans Koster
Last modified: 27 June 2011
Abstract
The estimation of preference heterogeneity is of key importance in the choice modelling literature. We propose a semi-parametric estimation approach to analyze observed heterogeneity. Under the assumption that more similar people in terms of socio-economic characteristics have more similar preferences, we show how to estimate nonparametric distributions of the preferences. The model is applied to a stated choice experiment intended to measure the value of time and reliability.
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