Identification and Estimation in Discrete Choice Demand Models when Endogenous Variables Interact with the Error

Abstract

We develop an estimator for the parameters of a utility function that has interactions between the unobserved demand error and observed factors including price. We show that the Berry (1994)/Berry, Levinsohn, and Pakes (1995) inversion and contraction can still be used to recover the mean utility term that now contains both the demand error and the… (More)

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