arXiv 2 Nov 2023 · Econometrics · 2 citations (OpenAlex)
arXiv:2311.01217 · PDF · DOI · OpenAlex · Extracted main text
Can temporary subsidies to bundles induce long-run changes in demand due to learning about the quality of one of the constituent goods? This paper provides theoretical support and empirical evidence on this mechanism. Theoretically, we introduce a model where an agent learns about the quality of an innovation through repeated consumption. We then assess the predictions of our theory in a randomised experiment in a ridesharing platform. The experiment subsidised car trips integrating with a train or metro station, which we interpret as a bundle. Given the heavy-tailed nature of our data, we propose a semiparametric specification for treatment effects that enables the construction of more efficient estimators. We then introduce an efficient estimator for our specification by relying on L-moments. Our results indicate that a ten-weekday 50% discount on integrated trips leads to a large contemporaneous increase in the demand for integration, and, consistent with our model, persistent changes in the mean and dispersion of nonintegrated app rides. These effects last for over four months. A calibration of our theoretical model suggests that around 40% of the contemporaneous increase in integrated rides may be attributable to increased incentives to learning. Our results have nontrivial policy implications for the design of public transit systems.
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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.
| Reference | Intensity | Mentions | Sections | Main text | |
|---|---|---|---|---|---|
| 1 | Newey, W. K (1990) Semiparametric efficiency bounds | 1.000 | 8 | 4 | 100% |
| 2 | Alvarez, L., Chiann, C., and Morettin, P (2024) Inference in parametric models with many l-moments self | 0.941 | 6 | 3 | 83% |
| 3 | Small, K. and Verhoef, E. T (2007) The economics of urban transportation | 0.928 | 4 | 4 | 100% |
| 4 | Athey, S., Bickel, P. J., Chen, A., Imbens, G. W., and Pollmann, M (2023) Semi-parametric estimation of treatment effects in randomised experiments | 0.897 | 18 | 6 | 72% |
| 5 | Hosking, J. R. M (1990) L-Moments: Analysis and Estimation of Distributions Using Linear Combinations of Order Statistics | 0.811 | 4 | 2 | 100% |
| 6 | Bickel, P. J., Klaassen, C. A., Bickel, P. J., Ritov, Y., Klaassen,… (1993) Efficient and adaptive estimation for semiparametric models, volume 4 | 0.644 | 2 | 2 | 100% |
| 7 | Lewis, R. A. and Rao, J. M (2015) The Unfavorable Economics of Measuring the Returns to Advertising * | 0.644 | 2 | 2 | 100% |
| 8 | Alvarez, L. and Orestes, V (2023) Quantile mixture models: estimation and inference self | 0.585 | 3 | 1 | 100% |
| 9 | Billingsley, P (2012) Probability and Measure | 0.511 | 2 | 2 | 50% |
| 10 | Durrett, R (2019) Probability: Theory and Examples | 0.511 | 2 | 2 | 50% |
Showing the top 10 of 71 scored citations.