Arbeitspapier
Nonparametric identification of random coefficients in endogenous and heterogeneous aggregated demand models
This paper studies nonparametric identification in market level demand models for differentiated products with heterogeneous consumers. We consider a general class of models that allows for the individual specific coefficients to vary continuously across the population and give conditions under which the density of these coefficients, and hence also functionals such as welfare measures, is identified. Building on earlier work by Berry and Haile (2013), we show that key identifying restrictions are provided by (i) a set of moment conditions generated by instrumental variables together with an inversion of aggregate demand in unobserved product characteristics; and (ii) the variation of the product characteristics across markets that is exogenous to the individual heterogeneity. We further show that two leading models, the BLP-model (Berry, Levinsohn, and Pakes,1995) and the pure characteristics model (Berry and Pakes, 2007), require considerably different conditions on the support of the product characteristics.
- Language
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Englisch
- Bibliographic citation
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Series: cemmap working paper ; No. CWP11/17
- Classification
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Wirtschaft
- Event
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Geistige Schöpfung
- (who)
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Dunker, Fabian
Hoderlein, Stefan
Kaido, Hiroaki
- Event
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Veröffentlichung
- (who)
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Centre for Microdata Methods and Practice (cemmap)
- (where)
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London
- (when)
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2017
- DOI
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doi:10.1920/wp.cem.2017.1117
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Dunker, Fabian
- Hoderlein, Stefan
- Kaido, Hiroaki
- Centre for Microdata Methods and Practice (cemmap)
Time of origin
- 2017
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