On the Existence of Quality Measures in Random Utility Models

Krzysztof Szczygielski and Andrzej Komisarski

MPRA Paper from University Library of Munich, Germany

Abstract: Random Utitly Models (RUMs) are a particularly convenient way of modelling product differentiation. In this paper we demonstrate that they can be used to examine the possibilities of creating quality measures from data on prices and sales volumes. We formulate conditions sufficient for the existence of quality measures in two broad families of RUMs: additive random utility models and pure vertical differentiation models.

Keywords: quality measure; product differentiation; random utility models (search for similar items in EconPapers)
JEL-codes: C60 D43 L15 (search for similar items in EconPapers)
Date: 2012-10-30
New Economics Papers: this item is included in nep-com and nep-upt
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:42261

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