A practitioner's guide to estimation of random-coefficients logit models of demand

Authors
Citation
A. Nevo, A practitioner's guide to estimation of random-coefficients logit models of demand, J ECON MAN, 9(4), 2000, pp. 513-548
Citations number
55
Categorie Soggetti
Economics
Journal title
JOURNAL OF ECONOMICS & MANAGEMENT STRATEGY
ISSN journal
10586407 → ACNP
Volume
9
Issue
4
Year of publication
2000
Pages
513 - 548
Database
ISI
SICI code
1058-6407(200024)9:4<513:APGTEO>2.0.ZU;2-L
Abstract
Estimation of demand is at the heart of many recent studies that examine qu estions of market power, mergers, innovation, and valuation of new brands i n differentiated-products markets. This paper focuses on one of the main me thods for estimating demand for differentiated products: random-coefficient s logit models. The paper carefully discusses the latest innovations in the se methods with the hope of increasing the understanding, and therefore the trust among researchers who have never used them, and reducing the difficu lty of their use, thereby aiding in realizing their full potential.