Kroft, Kory; Leal-Vizcaíno, René; Notowidigdo, Matthew J. - In: Economic theory 74 (2022) 3, pp. 923-946
feature parallel demand curves. Specifically, we show that in additive random utility models, inverse aggregate demand curves … shift in parallel with respect to variety if and only if the random utility shocks follow the Gumbel (Type 1 Extreme Value …) distribution. Using results from Extreme Value Theory, we provide conditions for other distributions to generate parallel demands …
