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Nonparametric Identification of Differentiated Products Demand Using Micro Data

Steven T. Berry, Philip A. Haile

arXiv 13 Apr 2022 · Econometrics · publishedEconometrica (2024) · 21 citations (OpenAlex)

arXiv:2204.06637 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We examine identification of differentiated products demand when one has "micro data" linking individual consumers' characteristics and choices. Our model nests standard specifications featuring rich observed and unobserved consumer heterogeneity as well as product/market-level unobservables that introduce the problem of econometric endogeneity. Previous work establishes identification of such models using market-level data and instruments for all prices and quantities. Micro data provides a panel structure that facilitates richer demand specifications and reduces requirements on both the number and types of instrumental variables. We address identification of demand in the standard case in which non-price product characteristics are assumed exogenous, but also cover identification of demand elasticities and other key features when product characteristics are endogenous. We discuss implications of these results for applied work.

Citation extraction

65
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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Berry, S. T. and P. A. Haile (2014) Identification in Differentiated Products Markets Using Market Level Data self1.00094100%
2Berry, S. T. and P. A. Haile (2021) Foundations of Demand Estimation, in self1.00075100%
3Berry, S., J. Levinsohn, and A. Pakes (1995) Automobile Prices in Market Equilibrium self1.00063100%
4Berry, S (1994) Estimating Discrete Choice Models of Product Differentiation self0.84333100%
5Berry, S. T. and P. A. Haile (2018) Nonparametric Identification of Simultaneous Equations Models with a Residual Index Structure self0.73732100%
6Berry, S. T., A. Gandhi, and P. A. Haile (2013) Connected Substitutes and Invertibility of Demand self0.73732100%
7Berry, S., J. Levinsohn, and A. Pakes (2004) Differentiated Products Demand Systems from a Combination of Micro and Macro Data: The New Vehicle Market self0.73732100%
8Berry, S. T. and P. A. Haile (2016) Identification in Differentiated Products Markets self0.64422100%
9Berry, S. T. and P. A. Haile (2010) Nonparametric Identification of Multinomial Choice Demand Models with Heterogeneous Consumers, Discussion Paper 1718, Cowles Fou… self0.64422100%
10Blundell, R., D. Kristensen, and R. L. Matzkin (2020) Individual Counterfactuals with Multidimensional Unobserved Heterogeneity, Tech0.64422100%

Showing the top 10 of 65 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1Nonparametric Identification of Demand without Exogenous Product Characteristics1.00083
2Uniformly Consistent Semi-nonparametric Demand Estimation with Micro-Data0.96195
3Identification and estimation of multinomial choice models with latent special covariates0.64422
4Generalized Bayes in Conditional Moment Restriction Models0.64422
5Choice Models and Permutation Invariance: Demand Estimation in Differentiated Products Markets0.40511
6From Unstructured Data to Demand Counterfactuals: Theory and Practice0.40511
7Panel Data Estimation of Individual Demand in Markets with Many Consumers0.40511
8Estimating Demand for a New Product0.40511