Revealed preference analysis of characteristics models
Laura Blow,
Martin Browning and
Ian Crawford
Additional contact information
Laura Blow: Institute for Fiscal Studies, London
No 2005-04, CAM Working Papers from University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics
Abstract:
Characteristics models have been found to be useful in many areas of economics. However, their empirical implementation tends to rely heavily on functional form assumptions. In this paper we develop a revealed preference approach to characteristics models. We derive the necessary and sufficient empirical conditions under which data on the market behaviour of heterogeneous, price-taking consumers are nonparametrically consistent with the consumer characteristics model. Where these conditions hold, we show how information may be recovered on individual consumer's marginal valuations of product attributes. In some cases marginal valuations are point identified and in other cases we can only recover bounds. Where the conditions fail we highlight the role which the introduction of unobserved product attributes can play in rationalising the data. We implement these ideas using consumer panel data on the Danish milk market.
Keywords: product characteristics; revealed preference (search for similar items in EconPapers)
JEL-codes: C43 D11 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2005-04
New Economics Papers: this item is included in nep-dcm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)
Downloads: (external link)
http://www.econ.ku.dk/cam/wp0910/wp0406/2005-04.pdf/ (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.econ.ku.dk/cam/wp0910/wp0406/2005-04.pdf/ [301 Moved Permanently]--> https://www.econ.ku.dk/cam/wp0910/wp0406/2005-04.pdf/)
Related works:
Journal Article: Revealed Preference Analysis of Characteristics Models (2008)
Working Paper: Revealed Preference Analysis of Characteristics Models (2006)
Working Paper: Revealed preference analysis of characteristics models (2005)
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:kud:kuieca:2005_04
Access Statistics for this paper
More papers in CAM Working Papers from University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics �ster Farimagsgade 5, Building 26, DK-1353 Copenhagen K., Denmark. Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Hoffmann ().