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Empirical Models of Consumer Behavior

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  • Aviv Nevo

Abstract

Models of consumer behavior play a key role in modern empirical Industrial Organization. In this paper, I survey some of the models used in this literature. In particular, I discuss two commonly used demand systems: multi-stage budgeting approaches and discrete choice models. I motivate their use and highlight some key modeling assumptions. I next briefly discuss key issues of estimation, and conclude by summarizing some extensions.

Suggested Citation

  • Aviv Nevo, 2010. "Empirical Models of Consumer Behavior," NBER Working Papers 16511, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:16511
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    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • L0 - Industrial Organization - - General

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