Showing 1 - 8 of 8
A building block of many models in empirical industrial organization is a characteristic space, where products are modeled as a bundle of characteristics over which consumers have preferences. The ability of such models to predict counterfactual outcomes depends on how well this characteristic...
Persistent link: https://www.econbiz.de/10013225637
We develop a model of consumer search with spatial learning in which sampling the payoff of one product causes consumers to update their beliefs about the payoffs of other products that are nearby in attribute space. Spatial learning gives rise to path dependence, as each new search decision...
Persistent link: https://www.econbiz.de/10014031723
We develop and estimate a model of consumer search with spatial learning. Consumers make inferences from previously searched objects to unsearched objects that are nearby in attribute space, generating path dependence in search sequences. The estimated model rationalizes patterns in data on...
Persistent link: https://www.econbiz.de/10014372454
Persistent link: https://www.econbiz.de/10011449867
Persistent link: https://www.econbiz.de/10011821475
We document the evolution of the newly created market for frequency response within the UK electricity system over a six-year period. Firms competed in price while facing considerable initial uncertainty about market demand and rival behavior. We show that over time prices stabilized, converging...
Persistent link: https://www.econbiz.de/10012456677
Persistent link: https://www.econbiz.de/10012320617
We document the evolution of the newly created market for frequency response within the UK electricity system over a six-year period. Firms competed in price while facing considerable initial uncertainty about market demand and rival behavior. We show that over time prices stabilized, converging...
Persistent link: https://www.econbiz.de/10012998954