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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: randomcoefŽcients logit models. The paper carefully discusses the latest(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)
This paper examines direct broadcast satellites (DBS) as a competitor to cable. We first estimate a structural consumer level demand system for satellite, basic cable, premium cable and local antenna using micro data on almost 30 000 households in 317 markets, including extensive controls for unobserved product quality and allowing the distribution of(More)
In the empirical study of markets, models of entry are often used to study the nature of firms’ profits and the nature of competition between firms. Most of these estimated models have been parametric. In this paper, we review and extend a number of results on the identification of models that are used in the empirical literature. We study simple versions(More)
A common thread in the theory literature on price discrimination has been the ambiguous welfare effects for consumers and the rise in profit for firms, relative to uniform pricing. In this study I resolve the ambiguity for consumers and quantify the benefit for a firm. A model of price discrimination is described which includes both second-degree and(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: the sampling error in estimating market shares, the simulation(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)
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)