IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v16y2009i5p465-468.html
   My bibliography  Save this article

Demand estimation under limited product availability

Author

Listed:
  • Steven Tenn

Abstract

Consumer purchases are determined, in part, by the assortment of products available at retailers. Despite this, commonly employed aggregate demand models fail to control for the fraction of stores that carry a given item. We detail the conditions under which aggregate demand is consistently estimated when heterogeneity in product assortment is ignored. The required assumptions are quite strict and likely violated in many empirical applications. Even when they hold, however, a problem of inference arises. One cannot tell whether a lack of interaction between two products is due to limited substitution in those stores where both are available or because many stores do not carry both products. This is a significant shortcoming since in many situations it is important to distinguish between these two possibilities.

Suggested Citation

  • Steven Tenn, 2009. "Demand estimation under limited product availability," Applied Economics Letters, Taylor & Francis Journals, vol. 16(5), pages 465-468.
    • Handle: RePEc:taf:apeclt:v:16:y:2009:i:5:p:465-468
    DOI: 10.1080/13504850601018650
    as

    Download full text from publisher

    File URL: http://www.informaworld.com/openurl?genre=article&doi=10.1080/13504850601018650&magic=repec&7C&7C8674ECAB8BB840C6AD35DC6213A474B5
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13504850601018650?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yaron Azrieli & John Rehbeck, 2022. "Marginal stochastic choice," Papers 2208.08492, arXiv.org.
    2. Larry G Epstein & Kaushil Patel, 2024. "Identifying Heterogeneous Decision Rules From Choices When Menus Are Unobserved," Papers 2405.09500, arXiv.org.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apeclt:v:16:y:2009:i:5:p:465-468. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.