We study games where voluntary contributions can be adjusted until a steady state is found. In consent games contributions start at zero and can be increased by consent, and in dissent games contributions start high and can be decreased by dissent. Equilibrium analysis predicts free riding in consent games but, in contrast, as much as socially efficient outcomes in dissent games. In our experim...

Understanding and accommodating heterogeneity in variance (also referred to as heteroscedasticity) and taste has become a major area of research within discrete choice analysis. Both scale and taste heterogeneity can be specified as continuous or discrete, the latter can be associated with socio economic characteristics (i.e. observed heterogeneity) or it can be derived probabilistically (i.e. ...

This paper provides a set of results on the econometric identifiability of binary choice models with social interactions. Our analysis moves beyond parametric identification results that have been obtained in the literature to consider the identifiability of model parameters when the distribution of random payoff terms is unknown. Further, we consider how identification is affected by the prese...

Random utility (RU) models are well-established methods for describing discrete choice behavior. Recently, there has been a strong upsurge in interest driven by advances in data gathering and estimation technology. This review paper describes the principles and issues, and develops a taxonomy of three major families of models. The paper summarizes and classifies the different approaches. The ad...

Determining appropriate utility specifications for discrete choice models is time-consuming and prone to errors. With the availability of larger datasets, as number possible exponentially grows with variables under consideration, analysts need spend increasing amounts time on searching good through trial-and-error, while expert knowledge required ensure these are sound. This paper proposes an a...

We compare the welfare costs of tax distortions of labour supply in one and two member household discrete and continuous labour supply (leisure consumption) choice models. In the discrete models taxes induce a large response from a subset of the population, while the majority of the population exhibits unchanged behaviour. In contrast the majority of the population reacts to tax changes in cont...

1. Simple labor supply models with correction for non-participation (PS #3) 2. Other approaches to kinked budget sets discretization 3. Dynamic labor supply introduction and overview Readings Thomas A. Mroz. “The Sensitivity of an Empirical Model of Married Women’s Hours of Work to Economic and Statistical Assumptions.” Econometrica, 55 (4) (July, 1987), pp. 765-799. Arthur van Soest "Structura...

We consider the theoretical and econometric properties of a recently proposed class of continuous time dynamic games with discrete choices. This class of models has computationally-desirable properties and includes widely-used entry, exit, and investment games that underlie many applications in empirical industrial organization. First, we establish a linear representation of the value functions...