Consider a model where each individual faces a finite number of alterna- tives and has to choose one of them. Each individual chooses the alternative that maximizes his/her utility. The utility of each individual i for an alter- native j is given by U; = U (j, S' , ; , E;) where s' E RK denotes a vector of socioeconomic characteristics of individual i, x', E R' denotes the vector of attributes of alternative j for individual i, and E E R denotes an unobservable random term for individual i and alternative j. Assume that s', is i.i.d. across i and j. Let y, = 1 if individual i chooses alternative j, and let y, = 0 otherwise and specify the function U by U (j, s' , x} , E; ) = a; + 7; s' + B'; 1; + 8; 3 for some parameters aj, 7,, and B