Digital Demand: Demand for digital cameras on eBay
نویسنده
چکیده
The paper estimates the demand for new digital cameras sold in eBay auctions. EBay data seems to offer significant advantages over traditional transactions data for estimating demand for differentiated products. However, there are a number of concerns including censoring bias and the interpretation of the bidding behavior. This paper presents results from three different methods for estimating demand for differentiated products on eBay. The results suggest that the demand for digital cameras is highly elastic and there isn’t a lot of substitution, particularly across brands. ∗Thanks to Laura Bivins, George Deltas, Mike Sandfort, Unjy Song, Steve Tenn, and other FTC colleagues for helpful discussions. Thanks also to Hao Xu for providing the data. Finally, thanks to Peter Newberry, Jorge Roberts and Jeanne Schoenfelder for excellent research assistance. Note that this paper does not necessarily represent the views of the Commission or any individual Commissioners. All remaining errors are our own.
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