SUPPLEMENT TO “ CONTRACT PRICING IN CONSUMER CREDIT MARKETS ” ( Econometrica
نویسندگان
چکیده
HERE WE PRESENT the likelihood function used to estimate the parameters of the demand model. The model can be thought of as a system of four “standard” equations: (i) a tobit down payment equation (with censoring at the minimum down), (ii) a probit purchase equation, (iii) a tobit repayment equation (with censoring at full payment or at the end of our sample), and (iv) a linear price negotiation equation. The model’s four equations are given by
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