Identification in differentiated product markets

Steven Berry () and Phil Haile

No 47/15, CeMMAP working papers from Institute for Fiscal Studies

Abstract: Empirical models of demand for - and, often, supply of – differentiated products are widely used in practice, typically employing parametric functional forms and distributions of consumer heterogeneity. We review some recent work studying identification in a broad class of such models. This work shows that parametric functional forms and distributional assumptions are not essential for identification. Rather, identification relies primarily on the standard requirement that instruments be available for the endogenous variables - here, typically, prices and quantities. We discuss the kinds of instruments needed for identification and how the reliance on instruments can be reduced by nonparametric functional form restrictions or better data. We also discuss results on discrimination between alternative models of oligopoly competition.

Date: 2015-08-19
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.cemmap.ac.uk/wp-content/uploads/2020/08/CWP4715.pdf (application/pdf)

Related works:
Journal Article: Identification in Differentiated Products Markets (2016)
Working Paper: Identification in Differentiated Products Markets (2015)
Working Paper: Identification in differentiated product markets (2015)
Working Paper: Identification in Differentiated Products Markets (2015)
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: https://EconPapers.repec.org/RePEc:azt:cemmap:47/15

DOI: 10.1920/wp.cem.2015.4715

Access Statistics for this paper

More papers in CeMMAP working papers from Institute for Fiscal Studies Contact information at EDIRC.
Bibliographic data for series maintained by Dermot Watson ().