Product Attributes and Models of Multiple Discreteness
Korea University Business School (KUBS)
Greg M. Allenby
Ohio State University (OSU) - Department of Marketing and Logistics
Peter E. Rossi
UCLA-Anderson School of Management
Demand for product characteristics is examined within the context of models that allow for both corner and interior solutions corresponding to zero and non-zero demand. Product attribute information is associated with marginal utility and curvature (satiation) parameters of various utility functions. Empirical applications demonstrate the need for incorporating characteristics in a fairly general way. We also compare our approach to an ideal point and pure Lancasterian versions of our nonlinear utility model. The data support our model over either the ideal point or Lancasterian variants.
Number of Pages in PDF File: 47
Keywords: multiple discreteness, demand models, characteristics models
JEL Classification: C5, D1, M3working papers series
Date posted: October 12, 2005
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