This course introduces students to the role of theory-based structural econometric models in i) estimating determinants of behavior from revealed preference data, ii) evaluating counterfactual decisions or policies by firms, organizations and/or the government and iii) assessing identification when using descriptive or "model-free" approaches to inference. It begins with discrete choice models applied in consumer choice contexts, then extends those models to consider state-dependence, forward-looking dynamics and equilibrium peer effects. A focus throughout is the role of heterogeneity for both identification and firm decisions. The class also considers simulation-based estimation and empirical pricing or advertising models. The emphasis is on an intuitive understanding and coding and estimation of entry-level models of consumer behavior.
3 units · GSB Letter Graded
This course introduces students to the role of theory-based structural econometric models in i) estimating determinants of behavior from revealed preference data, ii) evaluating counterfactual decisions or policies by firms, organizations and/or the government and iii) assessing identification when using descriptive or "model-free" approaches to inference. It begins with discrete choice models applied in consumer choice contexts, then extends those models to consider state-dependence, forward-looking dynamics and equilibrium peer effects. A focus throughout is the role of heterogeneity for both identification and firm decisions. The class also considers simulation-based estimation and empirical pricing or advertising models. The emphasis is on an intuitive understanding and coding and estimation of entry-level models of consumer behavior.
Offered in Spring 2026 at Stanford University.