1 option
Omitted Product Attributes in Discrete Choice Models / Amil Petrin, Kenneth Train.
- Format:
- Book
- Author/Creator:
- Petrin, Amil.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w9452.
- NBER working paper series no. w9452
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2003.
- Summary:
- We describe two methods for correcting an omitted variables problem in discrete choice models: a fixed effects approach and a control function approach. The control function approach is easier to implement and applicable in situations for which the fixed effects approach is not. We apply both methods to a cross-section of disaggregate data on customer's choice among television options including cable, satellite, and antenna. As theory predicts, the estimated price response rises substantially when either correction is applied. All of the estimated parameters and the implied price elasticities are very similar for both methods.
- Notes:
- Print version record
- January 2003.
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