Context-Dependent Heterogeneous Preferences: A Comment on Barseghyan and Molinari (2023)

05/18/2023

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by   Matias D. Cattaneo, et al.

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Barseghyan and Molinari (2023) give sufficient conditions for semi-nonparametric point identification of parameters of interest in a mixture model of decision-making under risk, allowing for unobserved heterogeneity in utility functions and limited consideration. A key assumption in the model is that the heterogeneity of risk preferences is unobservable but context-independent. In this comment, we build on their insights and present identification results in a setting where the risk preferences are allowed to be context-dependent.