Estimating multiple-discrete choice models: an application to computerization returns.
Buyers in many markets face multiple-discrete choices: they can purchase multiple-units as well as multiple-brands at the same time. This paper presents a multiple-discrete choice model for the analysis of differentiated products demand. Users maximize profits by choosing the number of units of ea...
| Publicado en: | Review of Economic Studies no. 227; pp. 423 - 447 |
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| Formato: | Artículo |
| Publicado: |
Oxford University Press / UK
2) no227 (April 1999
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| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| Sumario: | Buyers in many markets face multiple-discrete choices: they can purchase multiple-units as well as multiple-brands at the same time. This paper presents a multiple-discrete choice model for the analysis of differentiated products demand. Users maximize profits by choosing the number of units of each brand they purchase. I estimate the model using micro-level data on the demand for personal computers. I use the estimated demand structure to assess the welfare gains from computerization and technological innovation in peripherals. The estimated return on investment in personal computers is 92%. Moreover, a 10% increase in the performance-to-price ratio of microprocessors leads to a 2.2% gain in the estimated user surplus. Reprinted by permission of Review of Economic Studies Ltd. |
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