Uniqueness Seeking and Demand Estimation in the German Automobile Industry

Soellner, Rene; Guerzoni, Marco

doi:10.2139/ssrn.1458288

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Uniqueness Seeking and Demand Estimation in the German Automobile Industry

Jena Economic Research Papers in Economics No. 2009-050

27 Pages Posted: 22 Aug 2009

See all articles by Rene Soellner

Rene Soellner

Friedrich-Schiller-Universität Jena - School of Economics and Business Administration

Marco Guerzoni

Università degli Studi di Milano-Bicocca - Department of Economics, Management and Statistics (DEMS)

Date Written: August 20, 2009

Abstract

This paper empirically analyzes the determinants of demand in the German automobile industry. Our primary goal is to refine the existing literature on that topic by exploring the impact of uniqueness seeking behaviour of individuals on the demand schedule. Using a dataset on the segment of compact cars in the German market, we show that consumers have an intrinsic need for uniqueness seeking, and the degree a product satisfies this need is to be considered as an additional product characteristic.

Keywords: Deman, Estimation, Discrete Choice, Differentiated Products

JEL Classification: D12, L11, L15, L62

Suggested Citation: Suggested Citation

Soellner, Rene and Guerzoni, Marco, Uniqueness Seeking and Demand Estimation in the German Automobile Industry (August 20, 2009). Jena Economic Research Papers in Economics No. 2009-050, Available at SSRN: https://ssrn.com/abstract=1458288 or http://dx.doi.org/10.2139/ssrn.1458288