Joint Econ-S&P: Professor Matthijs Wildenbeest (The University of Arizona)
An Empirical Model of Consideration through Search
We propose a tractable method for the estimation of a consideration set model in which consideration sets are endogenously determined through search. We show that the widely-used alternative-specific consideration model with logit consideration is a special case in which consumers put zero weight on expected utility when making their search decisions. To deal with the dimensionality problem that may arise from a large number of consideration sets, we propose a novel, accurate, and computationally fast Monte Carlo estimator for the joint probabilities of consideration and choice. We use several existing datasets to identify the extent to which search played a role when buyers formed their consideration sets.
Date
Wednesday, 08 April 2026
Time
1.30pm to 2.45pm
Venue
In-Person Seminar
Biz01 06-01
Biz01 06-01