• Medientyp: E-Artikel
  • Titel: Demand estimation with infrequent purchases and small market sizes
  • Beteiligte: Hortaçsu, Ali; Natan, Olivia R.; Parsley, Hayden; Schwieg, Timothy; Williams, Kevin R.
  • Erschienen: The Econometric Society, 2023
  • Erschienen in: Quantitative Economics, 14 (2023) 4, Seite 1251-1294
  • Sprache: Englisch
  • DOI: 10.3982/qe2147
  • ISSN: 1759-7323
  • Entstehung:
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  • Beschreibung: We propose a demand estimation method that allows for a large number of zero‐ sale observations, rich unobserved heterogeneity, and endogenous prices. We do so by modeling small market sizes through Poisson arrivals. Each of these arriving consumers solves a standard discrete choice problem. We present a Bayesian IV estimation approach that addresses sampling error in product shares and scales well to rich data environments. The data requirements are traditional market‐level data as well as a measure of market sizes or consumer arrivals. After presenting simulation studies, we demonstrate the method in an empirical application of air travel demand.
  • Zugangsstatus: Freier Zugang