Showing 1 - 10 of 589
We state a sufficient condition under which choice data alone suffices to identify consumer preferences when choices … additional mild restrictions, an alternative method of recovering preferences using cross derivatives of choice probabilities … recovering preferences when consumers engage in costly search …
Persistent link: https://www.econbiz.de/10013321725
Limits on consumer attention give firms incentives to manipulate prospective buyers' allocation of attention. This paper models such attention manipulation and shows that it limits the ability of disclosure regulation to improve consumer welfare. Competitive information supply, from firms...
Persistent link: https://www.econbiz.de/10012946040
Is the variety of products supplied in markets a reflection of the diversity of consumers' preferences? In this paper … consumers' underlying preferences. In particular, there are strong incentives for conformity in markets for durable goods. The … extreme preferences; (3) conformity increases with increases in durability, patience, and the likelihood of trade; and (4 …
Persistent link: https://www.econbiz.de/10013228053
preferences for local public goods, product markets may provide an analogous incentive to sort into a community whose consumers … tend to share his preferences in private goods. Using zip code level data on chain restaurants and restaurants overall … findings. First, based on survey data on chain restaurant patronage, restaurant preferences differ substantially by race and …
Persistent link: https://www.econbiz.de/10013239177
.e., observation of the characteristics and choices of individual consumers. Our model of preferences nests random coefficients …
Persistent link: https://www.econbiz.de/10013151134
consumers have similar preferences to the principal, and those where consumer preferences diverge from those of the principal …
Persistent link: https://www.econbiz.de/10013249541
We examine an economy in which the cost of consuming some goods can be reduced by making commitments to consumption levels independent of the state. For example, it is cheaper to produce housing services via owner-occupied than rented housing, but the transactions costs associated with the...
Persistent link: https://www.econbiz.de/10013324613
We describe two methods for correcting an omitted variables problem in discrete choice models: a fixed effects approach and a control function approach. The control function approach is easier to implement and applicable in situations for which the fixed effects approach is not. We apply both...
Persistent link: https://www.econbiz.de/10013230577
The widely-used estimator of Berry, Levinsohn and Pakes (1995) produces estimates of consumer preferences from a …
Persistent link: https://www.econbiz.de/10013159520
Decision regulations help long-run preferences prevail by allowing consumers to partially commit to their long-run goals … Early Decision regulations demonstrates that Early Decisions are optimal when consumer preferences are heterogeneous …. Intuitively, each consumer knows his own preferences, so self-rationing - which is what Early Decisions enable - is better than a …
Persistent link: https://www.econbiz.de/10012761790