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Estimation of demand is at the heart of many recent studies that examine questions of market power, mergers, innovation, and valuation of new brands in differentiated-products markets. This paper focuses on one of the main methods for estimating demand for differentiated products: random-coefcients logit models. The paper carefully discusses the latest(More)
We provide an asymptotic distribution theory for a class of Generalized Method of Moments estimators that arise in the study of differentiated product markets when the number of observations is associated with the number of products within a given market. We allow for three sources of error: sampling error in estimating market shares, simulation error in(More)
This paper sets out, then estimates, the first equilibrium model for analyzing residential sorting that uses individual data. Our framework extends prior research by permitting a very flexible characterization of preferences, incorporating the geography of the urban housing market in a natural way, and developing a strategy for dealing with the endogeneity(More)
Pakes for valuable advice and assistance. I am especially grateful to Benjamin Mordecai for sharing with me his insights into theatre ticket pricing and for his interest in the study from the very beginning, and to Christina Mills for assisting me to obtain the data. Finally, I thank the Cowles Foundation for financial support in the form of a Carl Arvid(More)
R esearch in urban and public economics has focused on improving our understanding of the impact of local public goods and amenities on equilibrium sorting patterns of households. 1 These models take as their starting point the idea that households are at least potentially mobile. Communities differ according to their levels of public good provision, tax(More)
We present a dynamic model of the hospital industry in which nonprofit and for-profit hospitals coexist and compete and are differentiated by their objective functions, investment technologies, and taxation rates. In our model, patients differ by income and type of insurance coverage, and choose admission to their preferred hospital, while hospitals choose(More)
This study models advertising content as a noisy signal on product attributes. Contrary to previous empirical studies that modeled advertising only as part of the consumer's utility function, we formulate advertising also as an element in her information set. This approach yields the following implications. First, in some cases, exposure to advertising(More)
We estimate a structural equilibrium model of the automatic teller machine market (ATM) to evaluate the implications of regulating ATM surcharges. We use data on bank characteristics, potential and actual ATM locations, and consumer locations; identify the model parameters with a regression discontinuity design; and develop methods to estimate the model(More)
We seek to determine the causes and magnitudes of network externalities for the automated clearinghouse (ACH) electronic payments system. We construct an equilibrium model of customer and bank adoption of ACH. We structurally estimate the parameters of the model using an indirect inference procedure and panel data. The parameters are identified from(More)