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We investigate the impact of price discrimination by a large Chicago supermarket chain. First we measure the impact of the chain's current zone-pricing policy on shelf prices, variable profits and consumer welfare across its stores. Using the chain's database to simulate a finer store-specific...
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This paper investigates whether the tendency to buy store brand is category specific, or an enduring consumer trait. We develop a multicategory brand-choice model with a factor-analytic structure on the covariance matrix of the coefficients. The methodology allows us to elicit the basic latent...
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We investigate the role of potential weekly brand-specific characteristics that influence consumer choices, but are unobserved or unmeasurable by the researcher. We use an empirical approach, based on the estimation methods used for standard random coefficients logit models, to account for the...
Persistent link: https://www.econbiz.de/10009203938
Discrete choice models of aggregate demand, such as the random coefficients logit, can handle large differentiated products categories parsimoniously while still providing flexible substitution patterns. However, the discrete choice assumption may not be appropriate for many categories in which...
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