
handle: 10419/202040
Abstract This paper proposes a simple solution to the independence of irrelevant alternatives (IIA) problem in Choo and Siow (2006b) model, overcoming what is probably the main limitation of this approach. The solution consists of assuming match-specific rather than choice-specific random preferences. The original marriage matching function gets modified by an adjustment factor that improves its empirical properties.
J16, ddc:330, J10, J12, marriage market, Independence of irrelevant alternatives, transferable utility
J16, ddc:330, J10, J12, marriage market, Independence of irrelevant alternatives, transferable utility
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