Using a dataset in which we observe the specific individuals in a household making choices, we study differences in purchase behaviors within and across households in five grocery categories. We develop a choice model that recovers utility parameters from individuals' choices while allowing for...

Normative models typically suggest that prices rise in periods of high demand and cost. Yet in many markets, prices fall when demand or costs rise. This inconsistency occurs because the normative models assume that competitive intensity does not change with demand and cost conditions over time....

The extant literature using household scanner data to estimate consumer choice models has identified two key sources of bias in estimated mean responses to marketing variables. Omitted heterogeneity may bias mean responses towards zero. At the same time, omitted time-varying characteristics of...