Heterogeneous Demand Responses to Discrete Price Changes

Roger Hartley and Gauthier Lanot

No 2000/04, Keele Department of Economics Discussion Papers (1995-2001) from Department of Economics, Keele University

Abstract: This paper discusses the probability of exploiting price variations that may occur during the survey period of any household expenditure survey in order to identify heterogeneous demand responses to discrete price changes. This is possible since expenditure survey contain usually a large number of observations. In this paper we illustrate the feasibility of the approach in the case pf the demand for lottery tickets. The exercise is made difficult because of the sampling process, which generates our data We purpose a reduced form model of purchase, which allows identification of heyerogeneous responses to changes in the roller state (i.e. whether last week jackpot has been added to the current jackpot).We show that there is subtantial heterogeneity in the population both in the normal expenditure levels and the reaction to a jackpot rollover.

Keywords: Unobserved Heterogeneity; Poisson Distribution; Expectation/Maximisation Algorithm Lottery (search for similar items in EconPapers)
Pages: 21 pages
Date: 2000
Note: The ESRC supported the first author through grant R000236821 and the second author through Junior Fellowship H53627501695. We benefited from the comments of Paul Bingley, Care Kelly, Ian Walker and seminar participants in Keele and Manchester.
References: Add references at CitEc
Citations:

Published in Computational Statistics and Data Analysis, February 2006 Vol. 50(3), pages 859-877. [ doi:10.1016/j.csda.2004.10.006 ]

Downloads: (external link)
http://www.keele.ac.uk/depts/ec/wpapers/0004.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.keele.ac.uk/depts/ec/wpapers/0004.pdf [301 Moved Permanently]--> https://www.keele.ac.uk:443/depts/ec/wpapers/0004.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: https://EconPapers.repec.org/RePEc:kee:keeldp:2000/04

Ordering information: This working paper can be ordered from
Department of Economics, Keele University, Keele, Staffordshire ST5 5BG - United Kingdom
http://www.keele.ac.uk/depts/ec/cer/pubs_kerps.htm

Access Statistics for this paper

More papers in Keele Department of Economics Discussion Papers (1995-2001) from Department of Economics, Keele University Department of Economics, University of Keele, Keele, Staffordshire, ST5 5BG - United Kingdom. Contact information at EDIRC.
Bibliographic data for series maintained by Martin E. Diedrich ( this e-mail address is bad, please contact ).