Séminaire Microéconomie : Tous les mercredis
Heure : 12h15 – 13h30
Date : 10/19/1 octobre 2022
Salle : 3001

José L. MOGARA (Vrije Universiteit Amsterdam) – “ Demand Estimation with Simultaneous Search for Differentiated Products (with Z. Sandor and M. Wildenbeest)“

Résumé : In a lot of markets (e.g. clothes, footwear, hotels, bicycles, motorbikes, cars, houses, insurance, etc.) consumers are often poorly informed about whether a product is a good match and have to engage in costly search in order to check it. Despite this obvious fact, it is surprising that the very large literature on demand estimation assumes for its most part that consumers have full information because it is known that models that assume full information while that is not the case in reality lead to biased estimates of demand and markups, and hence to wrong (competition) policy conclusions. We believe the full information assumption is sticky because existing search models are still restrictive and impractical. In this paper we propose a model of search that allows for rich specifications of demand and search costs, while still being amenable to estimation and to analysis of policy counterfactuals. Monte Carlo experiments show the importance of estimating the mean and the variance of search costs.

Organisateurs :
Julien COMBE (Pôle d’Economie du CREST)
​​Roxana FERNANDEZ (Pôle d’Economie du CREST)
​​Matias NUNEZ (Pôle d’Economie du CREST)

Commanditaires :
CREST