Estimating a Differentiated Products Model with a Discrete/Continuous Choice and Limited Data
AbstractThis paper specifies a vertically differentiated products model for a product with a discrete/continuous choice. The model is easily estimated with the relatively limited data used in classical demand equation estimation, supplemented by readily available market characteristics data. The model, with some modifications, is estimated with a new dataset (by state and region) for the U.S. Portland cement industry. Plausible patterns of own and cross price elasticities are obtained. The role of market characteristics is estimated generalizing the applicability of the results to other markets and periods.
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Bibliographic InfoPaper provided by School of Economics, La Trobe University in its series Working Papers with number 2000.16.
Length: 30 pages
Date of creation: Dec 2000
Date of revision:
Economic Models; Evaluation; Consumption;
Other versions of this item:
- Prentice, David, 2000. "Estimating a Differentiated Products Model with a Discrete/Continuous Choice and Limited Data," MPRA Paper 28681, University Library of Munich, Germany.
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- L61 - Industrial Organization - - Industry Studies: Manufacturing - - - Metals and Metal Products; Cement; Glass; Ceramics
- R34 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Input Demand Analysis
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