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Estimating Demand for a New Product

Sizhong Sun

arXiv 14 Jun 2026 · Econometrics

arXiv:2606.15748 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper develops an approach for estimating demand for a new product. Taking willingness to pay (WTP) as primitive, it establishes a general and yet analytically simple demand function, and proposes an estimation procedure that consistently recovers the underlying demand function from the WTP data. Monte Carlo simulations find the estimation procedure works well in identifying the demand function. This approach complements existing methods of demand estimation, and can be applied both within and outside academia, for example in teaching economics, for a business to launch new products, and for policymakers to conduct non-market valuation.

Citation extraction

48
references
53
in-text mentions
48
distinct cited
1
self-citations
7,222
main-text words

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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
1Richard T. Carson (2012) Contingent Valuation: A Practical Alternative When Prices Aren't Available0.64422100%
2Robert Cameron Mitchell and Richard T. Carson (1989) Using Surveys to Value Public Goods: The Contingent Valuation Method0.64422100%
3Berry, Steven and Levinsohn, James and Pakes, Ariel (1995) Automobile Prices in Market Equilibrium0.51121100%
4William A. Barnett and Apostolos Serletis (2008) Consumer preferences and demand systems0.51121100%
5Diewert, W. E. and Wales, T. J (1988) Normalized Quadratic Systems of Consumer Demand Functions0.51121100%
6Green, Paul E. and Srinivasan, V (1978) Conjoint Analysis in Consumer Research: Issues and Outlook0.40511100%
7Berry, Steven and Linton, Oliver B. and Pakes, Ariel (2004) Limit Theorems for Estimating the Parameters of Differentiated Product Demand Systems0.40511100%
8Laurits R. Christensen and Dale W. Jorgenson and Lawrence J. Lau (1975) Transcendental Logarithmic Utility Functions0.40511100%
9Angus Deaton and John Muellbauer (1980) An Almost Ideal Demand System0.40511100%
10William A. Barnett and Yul W. Lee (1985) The Global Properties of the Minflex Laurent, Generalized Leontief, and Translog Flexible Functional Forms0.40511100%

Showing the top 10 of 48 scored citations.