Confessions of an internet monopolist: demand estimation for a versioned information good
We develop and apply a method for estimating demand system parameters for versioned information goods. Our analysis uses data collected from a web-based field experiment in which prices and versions of an information good were exogenously varied. Using a maximum simulated likelihood (MSL) procedure, we estimate parameters characterizing distributions of utility functions over a population of potential buyers. We then construct profit‐maximizing versioning and pricing plans for the seller and assess the welfare implications of those plans. Because firms increasingly have opportunities to collect information by tracking behavior of customers, methods similar to ours could be useful in future commercial applications. Copyright (C) 2010 John Wiley & Sons, Ltd.
Volume (Year): 32 (2011)
Issue (Month): 1 (January)
|Contact details of provider:|| Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/7976|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Oksana Loginova & Curtis R. Taylor, 2005.
"Price Experimentation with Strategic Buyers,"
0509, Department of Economics, University of Missouri.
- Glenn W. Harrison & John A. List, 2004.
Journal of Economic Literature,
American Economic Association, vol. 42(4), pages 1009-1055, December.
- Vassilis A. Hajivassiliou & Paul A. Ruud, 1993.
"Classical Estimation Methods for LDV Models Using Simulation,"
Cowles Foundation Discussion Papers
1051, Cowles Foundation for Research in Economics, Yale University.
- Hajivassiliou, Vassilis A. & Ruud, Paul A., 1986. "Classical estimation methods for LDV models using simulation," Handbook of Econometrics, in: R. F. Engle & D. McFadden (ed.), Handbook of Econometrics, edition 1, volume 4, chapter 40, pages 2383-2441 Elsevier.
- V.A. Hajivassiliou & P. A. Ruud, 1993. "Classical Estimation Methods for LDV Models Using Simulation," Econometrics 9311002, EconWPA.
- Vassilis A. Hajivassiliou and Paul A. Ruud., 1993. "Classical Estimation Methods for LDV Models Using Simulation," Economics Working Papers 93-219, University of California at Berkeley.
- Hajivassiliou, Vassilis A & Ruud, Paul A., 1993. "Classical Estimation Methods for LDV Models Using Simulation," Department of Economics, Working Paper Series qt3cg196fr, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Rosa Branca Esteves, 2007.
"Pricing with Customer Recognition,"
NIPE Working Papers
27/2007, NIPE - Universidade do Minho.
- Carlos Arias & THOMAS L. COX, 1999. "Maximum Simulated Likelihood: A Brief Introduction for Practitioners," Wisconsin-Madison Agricultural and Applied Economics Staff Papers 421, Wisconsin-Madison Agricultural and Applied Economics Department.
- Aghion, P. & Bolton, P. & Harris, C. & Jullien, B., 1990.
"Optimal Learning By Experimentation,"
DELTA Working Papers
90-10, DELTA (Ecole normale supérieure).
- Gourieroux, Christian & Monfort, Alain, 1993. "Simulation-based inference : A survey with special reference to panel data models," Journal of Econometrics, Elsevier, vol. 59(1-2), pages 5-33, September.
- Brian Kahin & Hal R. Varian (ed.), 2000. "Internet Publishing and Beyond: The Economics of Digital Information and Intellectual Property," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262611597, December.
- Rothschild, Michael, 1974. "A two-armed bandit theory of market pricing," Journal of Economic Theory, Elsevier, vol. 9(2), pages 185-202, October.
- Alessandro Acquisti & Hal R. Varian, 2002.
"Contidioning Prices on Purchase History,"
- Lee, Lung-Fei, 1995. "Asymptotic Bias in Simulated Maximum Likelihood Estimation of Discrete Choice Models," Econometric Theory, Cambridge University Press, vol. 11(03), pages 437-483, June.
When requesting a correction, please mention this item's handle: RePEc:wly:mgtdec:v:32:y:2011:i:1:p:1-15. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.