A HYBRID DISCRETE CHOICE MODEL OF DIFFERENTIATED PRODUCT DEMAND WITH AN APPLICATION TO PERSONAL COMPUTERS

• 成果类型: Article
• 署名作者: Song, Minjae
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12102
• 发表日期: 2015
• 页码: 265-301
• 关键词: market; mergers

摘要

In this article, I consider a new discrete choice model of differentiated product demand that distinguishes a brand-level differentiation from a product-level differentiation. The model is a hybrid of the random coefficient logit model of Berry etal. (Econometrica 63 (1995), 841-90) and the pure characteristics model of Berry and Pakes (International Economic Review 48 (2007), 1193-1225) and describes markets where firms offer multiple products of different qualities under the same brand name. I compare the hybrid model with existing models using data on personal computers. Using the estimates of the hybrid model, I also provide empirical evidence that firms reposition their brands in a postmerger market.