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Estimating Internet Users' Demand Characteristics


  • Gupta, Alok
  • Jukic, Boris
  • Li, Mingzhi
  • Stahl, Dale O.
  • Whinston, Andrew B.


We investigate two parametric approaches and one non-parametric approach to estimating Internet users' value-of-time, an important characteristic of demand for Internet services. The advantages of these approaches are made clear and their limitations discussed. The models are tested with data generated from our simulation model of the Internet economy. Given the characteristics of the data, we investigate parametric count-data models first. While reasonably good results are obtained on all medium and large-sized jobs, the method fails on small-sized ones. Second, we develop a nonparametric quasi-Bayesian update algorithm for retrieving the underlying distribution function of Internet users' value-of-time purely from observations on their choices. Compared with the parametric count-data models, good results are obtained in every case. Copyright 2001 by Kluwer Academic Publishers

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  • Gupta, Alok & Jukic, Boris & Li, Mingzhi & Stahl, Dale O. & Whinston, Andrew B., 2001. "Estimating Internet Users' Demand Characteristics," Computational Economics, Springer;Society for Computational Economics, vol. 17(2-3), pages 203-218, June.
  • Handle: RePEc:kap:compec:v:17:y:2001:i:2-3:p:203-18

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    References listed on IDEAS

    1. Hausman, Jerry & Hall, Bronwyn H & Griliches, Zvi, 1984. "Econometric Models for Count Data with an Application to the Patents-R&D Relationship," Econometrica, Econometric Society, vol. 52(4), pages 909-938, July.
    2. Gupta, Alok & Stahl, Dale O. & Whinston, Andrew B., 1997. "A stochastic equilibrium model of internet pricing," Journal of Economic Dynamics and Control, Elsevier, vol. 21(4-5), pages 697-722, May.
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    Cited by:

    1. Dale O. Stahl, 2002. "The Inefficiency of First and Second Price Auctions in Dynamic Stochastic Environments," Netnomics, Springer, vol. 4(1), pages 1-18, March.

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