On the Existence of Quality Measures in Random Utility Models

Random Utitly Models (RUMs) are a particularly convenient way of modelling product differentiation. In this paper we demonstrate that they can be used to examine the possibilities of creating quality measures from data on prices and sales volumes. We formulate conditions sufficient for the existence of quality measures in two broad families of RUMs: additive random utility models and pure vertical differentiation models.

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Year of publication:	2012-10-30
Authors:	Szczygielski, Krzysztof ; Komisarski, Andrzej
Institutions:	Volkswirtschaftliche Fakultät, Ludwig-Maximilians-Universität München
Subject:	quality measure \| product differentiation \| random utility models

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Extent:	application/pdf
Series:	MPRA Paper.
Type of publication:	Book / Working Paper
Classification:	D43 - Oligopoly and Other Forms of Market Imperfection ; L15 - Information and Product Quality; Standardization and Compatibility ; C60 - Mathematical Methods and Programming. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011111192