A computationally fast estimator for random coefficients logit demand models using aggregate data.

This article proposes a computationally fast estimator for random coefficients logit demand models using aggregate data that Berry, Levinsohn, and Pakes (; hereinafter, BLP) suggest. Our method, which we call approximate BLP (ABLP), is based on a linear approximation of market share functions. The c...

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Publicado en:RAND Journal of Economics (Wiley-Blackwell) Vol. 46; no. 1; pp. 86 - 103
Autores principales: Lee, Jinhyuk, Seo, Kyoungwon
Formato: Artículo
Publicado: Wiley-Blackwell Spring2015
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        100670177
        10.1111/1756-2171.12078
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        atl: A computationally fast estimator for random coefficients logit demand models using aggregate data.
      aug:
        au:
          Lee, Jinhyuk
          Seo, Kyoungwon
        affil:
          Ulsan National Institute of Science and Technology
          Korea Advanced Institute of Science and Technology
      su:
        Logits
        Biomathematics
        Logarithms
        Approximation theory
        Functional analysis
      sug:
        subj:
          Logits
          Biomathematics
          Logarithms
          Approximation theory
          Functional analysis
      ab: This article proposes a computationally fast estimator for random coefficients logit demand models using aggregate data that Berry, Levinsohn, and Pakes (; hereinafter, BLP) suggest. Our method, which we call approximate BLP (ABLP), is based on a linear approximation of market share functions. The computational advantages of ABLP include (i) the linear approximation enables us to adopt an analytic inversion of the market share equations instead of a numerical inversion that BLP propose, (ii) ABLP solves the market share equations only at the optimum, and (iii) it minimizes over a typically small dimensional parameter space. We show that the ABLP estimator is equivalent to the BLP estimator in large data sets. Our Monte Carlo experiments illustrate that ABLP is faster than other approaches, especially for large data sets.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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