Merger Simulation with Nested Logit Demand

Merger Simulation with Nested Logit Demand – Implementation using Stata

In this article we show how to implement merger simulation in Stata after estimating an aggregate nested logit demand system with a linear regression model. We also show how to implement merger simulation when the demand parameters are not estimated, but instead calibrated to be consistent with outside information on average price elasticities and pro…t margins.

A Nested Logit Model of Recreational Fishing Demand in Alaska

This paper (and the large study behind it) was in some ways a labor of love. We set out to build a discrete choice model to predict recreational fishing behavior that would extend the literature along several dimensions. our interest in doing so stemmed from earlier work that we were individually or collectively involved in. hanemann’s dissertation (1978)1 suggested the power of the discrete ch...

The Generalized Nested Logit Model

The generalized nested logit model is a new member of the generalized extreme value family of models. The GNL provides a higher degree of flexibility in the estimation of substitution or cross-elasticity between pairs of alternatives than previously developed generalized extreme value models. The generalized nested logit model includes the paired combinatorial logit and cross-nested logit model...

Pricing Multiple Products with the Multinomial Logit and Nested Logit Models: Concavity and Implications

Testing The Consistency of Nested Logit Models with Utility Maximization

The Nested Multinomial Logit (NMNL) model is used extensively in modeling consumer choices among discrete alternatives when the number of alternatives is large. Unfortunately, applied researchers often find that estimated NMNL models fail to meet the Daly-ZacharyMcFadden (DZM) sufficient conditions for consistency with stochastic utility maximization. Borsch-Supan (1990) provides a relaxed set ...