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...

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Publicado en:Review of Economic Studies no. 227; pp. 423 - 447
Autor principal: Hendel, Igal
Formato: Artículo
Publicado: Oxford University Press / UK 2) no227 (April 1999
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: 2) no227 (April 1999
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      pub: Oxford University Press / UK
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        10.1111/1467-937X.00093
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        atl: Estimating multiple-discrete choice models: an application to computerization returns.
      aug:
        au: Hendel, Igal
      su:
        Brand choice
        Mathematical models
        Purchasing of personal computers
        Product differentiation
      sug:
        subj:
          Brand choice
          Mathematical models
          Purchasing of personal computers
          Product differentiation
      ab: 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.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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