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On Asymptotic Properties Of The Parameters Of Differentiated Product Demand And Supply Systems When Demographically Categorized Purchasing Pattern Data Are Available

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  • Satoshi Myojo
  • Yuichiro Kanazawa

Abstract

We derive asymptotic properties of an estimator for supply and demand models extended with additional moments relating consumer demographics to the characteristics of purchased products. We clarify the structure of a practical sampling scheme in which the extended estimator is consistent, asymptotically normal, and more efficient than the original estimator. We provide conditions guaranteeing the asymptotic theorems hold for the random coefficient logit model of demand with oligopolistic suppliers. Extensive simulation studies demonstrate significant benefits of the additional moments in estimating the random coefficient logit model.

Suggested Citation

  • Satoshi Myojo & Yuichiro Kanazawa, 2012. "On Asymptotic Properties Of The Parameters Of Differentiated Product Demand And Supply Systems When Demographically Categorized Purchasing Pattern Data Are Available," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 53(3), pages 887-938, August.
    • Handle: RePEc:wly:iecrev:v:53:y:2012:i:3:p:887-938
    DOI: 10.1111/j.1468-2354.2012.00705.x
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    References listed on IDEAS

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    1. Matsumoto, Tomoki & Kamai, Tomohito & Kanazawa, Yuichiro, 2024. "Examining bargaining power in the distribution channel under possible price pass-through behaviors of retailers," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).

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