EconPapers    
Economics at your fingertips  
 

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)
New Economics Papers: this item is included in nep-dcm
Date: 2005-04
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.econ.ku.dk/cam/wp0910/wp0406/2005-04.pdf/ (application/pdf)

Related works:
Journal Article: Revealed Preference Analysis of Characteristics Models (2008) Downloads
Working Paper: Revealed Preference Analysis of Characteristics Models (2006) Downloads
Working Paper: Revealed preference analysis of characteristics models (2005) Downloads
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 Øster Farimagsgade 5, Building 26, DK-1353 Copenhagen K., Denmark. Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Hoffmann ().

 
Page updated 2019-09-16
Handle: RePEc:kud:kuieca:2005_04