Institute for Data Analysis and Visualization

Conventional discrete choice models assume implicity that the choice set is independent of the decisionmaker's preferences conditional on the explanatory variables of the models. This assumption is implausible in many choice situations where the decisionmaker selects his or her choice set. This paper estimates and tests a discrete choice model with endogenous choice sets based on Horowitz' theoretical work. To Calibrate the model, a new probability simulator is introduced and a sequential estimation procedure is developed. The model and calivration methods are tested in an empirical applications