Product Attributes and Models of Multiple Discreteness

47 Pages Posted: 12 Oct 2005

See all articles by Jaehwan Kim

Jaehwan Kim

Korea University Business School (KUBS)

Greg M. Allenby

Ohio State University (OSU) - Department of Marketing and Logistics

Peter E. Rossi

University of California, Los Angeles (UCLA) - Anderson School of Management

Date Written: February 2006

Abstract

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.

Keywords: multiple discreteness, demand models, characteristics models

JEL Classification: C5, D1, M3

Suggested Citation

Kim, Jaehwan and Allenby, Greg M. and Rossi, Peter E., Product Attributes and Models of Multiple Discreteness (February 2006). Available at SSRN: https://ssrn.com/abstract=817476 or http://dx.doi.org/10.2139/ssrn.817476

Jaehwan Kim

Korea University Business School (KUBS) ( email )

Anam-Dong, Seongbuk-Gu
Seoul 136-701, 136701
Korea
822.3290.2603 (Phone)
822.922.7220 (Fax)

Greg M. Allenby

Ohio State University (OSU) - Department of Marketing and Logistics ( email )

Fisher Hall 524
2100 Neil Ave
Columbus, OH 43210
United States

Peter E. Rossi (Contact Author)

University of California, Los Angeles (UCLA) - Anderson School of Management ( email )

110 Westwood Plaza
Los Angeles, CA 90095-1481
United States
773-294-8616 (Phone)

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