The aim of this paper is to analyse the impact of unobserved preference heterogeneity in empirical applications of discrete choice models of labour supply. Typically, unobserved heterogeneity is estimated either with continuous or discrete mixture models. However, in order to avoid estimation...

Common, if not ubiquitous, Marketing practice when estimating models for scanner panel data is to: (a) observe the data, (b) prune the data to a “manageable” number of brands or SKUs, and (c) fit models to the remaining data. We demonstrate that such pruning practice can lead to...