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

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.