Econometric Modeling of holding and Usage of Differentiated Products: an Application of Telephones

Jérôme Foncel and Marc Ivaldi

Annals of Economics and Statistics, 2008, issue 89, 157-191

Abstract: In this paper we develop a model to deal simultaneously with the holding of equipment and the choice of a level of usage. Based on individual data, our model deals with standard problems encountered in the empirical IO literature, i.e. price endogeneity, dimensionality of product sets and correctness of price elasticities. Moreover, we compute markups for all products assuming that firms behave according to the Nash equilibrium.

Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:adr:anecst:y:2008:i:89:p:157-191

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