Nonparametric Identification of Differentiated Products Demand Using Micro Data

Steven Berry () and Philip Haile

No 27704, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: A recent literature considers the identification of heterogeneous demand and supply models via "quasi-experimental'' variation, as from instrumental variables. In this paper we establish nonparametric identification of differentiated products demand when one has "micro data'' linking characteristics of individual consumers to their choices. Micro data provide a panel structure allowing one to exploit variation across consumers within each market, where latent demand shocks are fixed. This facilitates richer demand specifications while substantially softening the reliance on instrumental variables, reducing both the number and types of instruments required. Our results require neither the structure of a "special regressor'' nor a "full support'' assumption on consumer-level observables.

JEL-codes: C14 C26 C3 D12 L0 (search for similar items in EconPapers)
Date: 2020-08
New Economics Papers: this item is included in nep-com
Note: IO
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://www.nber.org/papers/w27704.pdf (application/pdf)

Related works:
Journal Article: Nonparametric Identification of Differentiated Products Demand Using Micro Data (2024)
Working Paper: Nonparametric Identification of Differentiated Products Demand Using Micro Data (2023)
Working Paper: Nonparametric Identification of Differentiated Products Demand Using Micro Data (2022)
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:nbr:nberwo:27704

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w27704

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().