To measure the extent of incomplete information about brand qualities faced by consumers, recent research in marketing and economics has extended traditional static choice models to explicitly allow for consumer learning. These models tend to be complicated and make stringent assumptions such as...

This paper summarizes four stylized facts about the prescription drug markets after patent expiration during the 80s: (i) generic firms entered the market at different points of time after patent expiration and they seldom exited; (ii) the brand-name price remained much higher than generic prices,...

This paper provides a step-by-step guide to estimating infinite horizon discrete choice dynamic programming (DDP) models using a new Bayesian estimation algorithm (Imai, Jain and Ching, Econometrica 77:1865-1899, 2009) (IJC). In the conventional nested fixed point algorithm, most of the...

We propose a new methodology for structural estimation of infinite horizon dynamic discrete choice models. We combine the Dynamic Programming (DP) solution algorithm with the Bayesian Markov Chain Monte Carlo algorithm into a single algorithm that solves the DP problem and estimates the...

In "Marketing Information: A Competitive Analysis,'' Sarvary and Parker (1997) (S&P) [Marketing Science, 16(1): 24-38] argue that, a reduction in the price of one information product can lead to an increase in demand for another information product -- information products can be gross...

We develop a Bayesian Markov chain Monte Carlo (MCMC) algorithm for estimating finite-horizon discrete choice dynamic programming (DDP) models. The proposed algorithm has the potential to reduce the computational burden significantly when some of the state variables are continuous. In a...

'Frequent-buyer' type of rewards program is a commonly used marketing tool for companies to compete for market shares. It also provides an unique environment for studying consumer's forward-looking behavior. The consumer's problem on accumulating reward points can be formulated as a stationary...

This paper develops a structural multi-location consumer demand model to analyze spatially differentiated retail networks. A novel feature is that we allow consumers to care about outlets that are close to either home or workplace locations. This is in contrast to the previous literature, which...

As information technology improves rapidly and becomes more accessible, it becomes much easier for consumers to gather product in-formation and spend more time thinking about how to get the most out of their budget constraints. This means that consumers are getting “smarter” and more...