ESTIMATING DISCRETE-CHOICE MODELS OF PRODUCT DIFFERENTIATION

• 成果类型: Article
• 署名作者: BERRY, ST
• 刊物名称: RAND JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0741-6261
• DOI: 10.2307/2555829
• 发表日期: 1994
• 页码: 242-262
• 关键词: implicit markets; hedonic prices; COMPETITION; equilibrium; demand

摘要

This article considers the problem of ''supply-and-demand'' analysis on a cross section of oligopoly markets with differentiated products. The primary methodology is to assume that demand can be described by a discrete-choice model and that prices are endogenously determined by price-setting firms. In contrast to some previous empirical work, the techniques explicitly allow for the possibility that prices are correlated with unobserved demand factors in the cross section of markets. The article proposes estimation by ''inverting'' the market-share equation to find the implied mean levels of utility for each good. This method allows for estimation by traditional instrumental variables techniques.