Demand Models for Differentiated Products with Complementarity and Substitutability
Publikation: Working paper › Forskning
Standard
Demand Models for Differentiated Products with Complementarity and Substitutability. / Fosgerau, Mogens; de Palma, André; Monardo, Julien.
2018.Publikation: Working paper › Forskning
Harvard
APA
Vancouver
Author
Bibtex
}
RIS
TY - UNPB
T1 - Demand Models for Differentiated Products with Complementarity and Substitutability
AU - Fosgerau, Mogens
AU - de Palma, André
AU - Monardo, Julien
PY - 2018/4/30
Y1 - 2018/4/30
N2 - We develop a class of demand models for differentiated products. The new models facilitate the BLP method (Berry et al. 1995) by avoiding numerical inversion of the demand system. They accommodate rich patterns of substitution and complementarity while being easily estimated with standard regression techniques and allowing very large choice sets. We use the new models to describe markets for differentiated products that exhibit segmentation along several dimensions and illustrate their application by estimating the demand for cereals in Chicago.
AB - We develop a class of demand models for differentiated products. The new models facilitate the BLP method (Berry et al. 1995) by avoiding numerical inversion of the demand system. They accommodate rich patterns of substitution and complementarity while being easily estimated with standard regression techniques and allowing very large choice sets. We use the new models to describe markets for differentiated products that exhibit segmentation along several dimensions and illustrate their application by estimating the demand for cereals in Chicago.
KW - Demand estimation
KW - Differentiated products
KW - Discrete choice
KW - Generalized entropy
KW - Representative consumer
U2 - 10.2139/ssrn.3141041
DO - 10.2139/ssrn.3141041
M3 - Working paper
T3 - University of Copenhagen. Institute of Economics. Discussion Papers (Online)
BT - Demand Models for Differentiated Products with Complementarity and Substitutability
ER -
ID: 214649137