A state-dependent model of hybrid behavior with rational consumers in the attribute space

Sergi Jimenez-Martin () and Antonio Ladrón de Guevara-Martínez
Additional contact information
Antonio Ladrón de Guevara-Martínez: Universitat Pompeu Fabra

Investigaciones Economicas, 2009, vol. 33, issue 3, pages 347-383

Abstract: This paper presents a dynamic choice model in the attribute space considering rational consumers. The model presents a stationary consumption pattern that can be inertial, where the consumer only buys one product, or a varietyseeking one, where the consumer shifts among varied products. Under the hybrid utility assumption, the consumer behaves inertially among the unfamiliar brands for several periods, eventually switching to a varietyseeking behavior when the stationary levels are approached. An empirical illustration with myopic agents is run using scanner databases for three different product categories: fabric softener, saltine cracker, and catsup. Nonlinear specifications provide the best fit of the data, as hybrid functional forms are found in all the products. The resullts confirm the gradual trend to seek variety as the level of familiarity with the purchased items increases.

Keywords: Choice models; state-dependence; hybrid behavior. (search for similar items in EconPapers)
JEL-codes: C23 D11 D12 D91 (search for similar items in EconPapers)
Date: 2009
View list of references

Downloads: (external link)
ftp://ftp.funep.es/InvEcon/paperArchive/Sep2009/v33i3a2.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:iec:inveco:v:33:y:2009:i:3:p:347-383

Ordering information: This journal article can be ordered from
http://www.funep.es/invecon/en/eSubsInfo.asp

Access Statistics for this article

Investigaciones Economicas is edited by Antonio Cabrales and Pedro Mira

More articles in Investigaciones Economicas from Fundación SEPI
Address: Investigaciones Economicas Fundación SEPI Quintana, 2 (planta 3) 28008 Madrid Spain
Series data maintained by Isabel Sánchez-Seco ().