Empirical Models of Consumer Behavior
38 Pages Posted: 1 Nov 2010 Last revised: 12 Feb 2021
Date Written: October 2010
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.
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