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Identification of Demand Models of Multiple Purchases

Author

Listed:
  • Itai Sher

    (Department of Economics, University of Minnesota)

  • Kyoo il Kim

    (Department of Economics, University of Minnesota)

Abstract

We study the nonparametric identification of distributions of utility functions in a multiple purchase setting with a finite number of consumers. Each utility function takes as arguments subsets or, alternatively, quantities of the multiple goods. We exploit mathematical insights from auction theory to generically identify the distribution of utility functions. We use price variation and aggregate data on the sales of each product, but not on individual level purchases or the total sales of bundles of products.

Suggested Citation

  • Itai Sher & Kyoo il Kim, 2012. "Identification of Demand Models of Multiple Purchases," Working Papers 2012-2, University of Minnesota, Department of Economics.
    • Handle: RePEc:min:wpaper:2012-2
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    File Function: First version, 2012
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    References listed on IDEAS

    as
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    Cited by:

    1. Jeremy Fox & Natalia Lazzati, 2013. "Identification of discrete choice models for bundles and binary games," CeMMAP working papers CWP04/13, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.

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    More about this item

    Keywords

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    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory

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