Transportation networks, such as railways, roads and highways provide standard examples of natural monopolies. Since the introduction of the term “natural monopoly” by T. Malthus in 1815, this concept has been defined in different ways by several authors (F. Bastiat, J. S. Mill or L....

We propose the Inverse Product Differentiation Logit (IPDL) model, a structural (inverse) demand model for differentiated products that captures market segmentation along several possibly overlapping dimensions. It generalizes the nested logit model to allow richer substitution patterns,...

I develop the flexible inverse logit (FIL) model, which is a structural inverse demand model which is able to describe the behavior of heterogeneous, utility-maximizing consumers choosing from a choice set of (possibly many) products that are differentiated in a way that is both observed and...

Many empirical studies require estimating how consumers substitute across differentiated products. Examples can be found in a wide range of fields of economics, including environmental economics, health care economics, industrial organization, and international trade. In this paper, I propose a...

Applied researchers commonly use the quasi-linear utility model to study various economic questions. In this paper, I derive the restrictions on the form of the demand function implied by a large set of quasi-linear utility models that describe a utility-maximizing consumer choosing an...