Nonparametric Identification of Differentiated Products Demand Using Micro Data
Author | : Steven Berry |
Publisher | : |
Total Pages | : 0 |
Release | : 2022 |
ISBN-10 | : OCLC:1375410987 |
ISBN-13 | : |
Rating | : 4/5 ( Downloads) |
Download or read book Nonparametric Identification of Differentiated Products Demand Using Micro Data written by Steven Berry and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: A recent literature considers the identification of heterogeneous demand and supply models via "quasi-experimental'' variation, as from instrumental variables. In this paper we establish nonparametric identification of differentiated products demand when one has "micro data'' linking characteristics of individual consumers to their choices. Micro data provide a panel structure allowing one to exploit variation across consumers within each market, where latent demand shocks are fixed. This facilitates richer demand specifications while substantially softening the reliance on instrumental variables, reducing both the number and types of instruments required. Our results require neither the structure of a "special regressor'' nor a "full support'' assumption on consumer-level observables.