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Semi-structural models of advertising competition

Author

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  • Joris Pinkse

    (Department of Economics, Pennsylvania State University, University Park, Pennsylvania, USA)

  • Margaret Slade

    (Department of Economics, University of Warwick, Coventry, UK)

Abstract

We propose a semi-structural discrete-choice model that can be used to estimate static or dynamic decision rules. It is particularly useful in strategic contexts when games involve a rich set of choices, when private information is correlated, and when one wants to uncover the effect of historic behavior (on, for example, prices, sales, and profits). We apply our discrete-choice estimator to study decision rules for a dynamic game of price and advertising competition, and we evaluate the long-run consequences of those rules. Copyright © 2007 John Wiley & Sons, Ltd.

Suggested Citation

  • Joris Pinkse & Margaret Slade, 2007. "Semi-structural models of advertising competition," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(7), pages 1227-1246.
    • Handle: RePEc:jae:japmet:v:22:y:2007:i:7:p:1227-1246
    DOI: 10.1002/jae.983
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    References listed on IDEAS

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    Cited by:

    1. Arnab Bhattacharjee & Sean Holly, 2013. "Understanding Interactions in Social Networks and Committees," Spatial Economic Analysis, Taylor & Francis Journals, vol. 8(1), pages 23-53, March.
    2. Haiqing Xu, 2010. "Social Interactions: A Game Theoretic Approach," Department of Economics Working Papers 130914, The University of Texas at Austin, Department of Economics.
    3. Giuseppe Arbia, 2011. "A Lustrum of SEA: Recent Research Trends Following the Creation of the Spatial Econometrics Association (2007--2011)," Spatial Economic Analysis, Taylor & Francis Journals, vol. 6(4), pages 377-395, July.
    4. J. Paul Elhorst & Pim Heijnen & Anna Samarina & Jan P. A. M. Jacobs, 2017. "Transitions at Different Moments in Time: A Spatial Probit Approach," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 32(2), pages 422-439, March.

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