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Julien MONARDO (CREST) – "Demand Models for Differentiated Products with Complementarity and Substitutability" joint with M. Fosgerau and A. de Palma
The Microeconomics Seminar: Every Wednesday at 12:15 pm.
Time: 12:15 pm – 1:30 pm
Date: 06th of June 2018
Place: Room 3001.
Julien MONARDO (CREST) – “Demand Models for Differentiated Products with Complementarity and Substitutability” joint with M. Fosgerau and A. de Palma
Abstract: We develop a class of demand models for differentiated products based on the concept of entropy. 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.
Link to the paper.
Marie-Laure Allain, Pierre Boyer, Laurent Linnemer & Morgane Cure (CREST)
Food is provided.