We model unobserved preference heterogeneity in demand systems as random Barten scales in utility functions. These Barten scales appear as random coefficients multiplying prices in demand functions. Consumer demands are nonlinear in prices and may have unknown functional structure. We therefore prove identification of additive Generalized Random Coefficients models, defined as additive nonparam...

Consader a consumer who can choose to travel on a congestlble fast mode or on a congesuble slow mode. Users who most value tame will use the fast mode A toll on the slow mode can reduce some people who lmtlally use that mode to switch to the fast mode A toll on the slow mode w~th revenue not returned to users then necessarily reduces the welfare of all users A toil on the fast mode may raxse ag...

This paper estimates the importance of network effects in the market for Yellow Pages. I estimate three simultaneous equations: consumer demand for usage of a directory, advertiser demand for advertising and a publisher’s first-order condition (derived from profitmaximizing behavior). Estimation shows that advertisers value consumer usage and that consumers value advertising, implying a network...

Search with Refinement Preliminary. Please do not cite or distribute The development of online search technology has profound impacts on consumers, business, and the society. One important feature of online search is that consumers are able to refine the search results using tools such as sorting and filtering. Albeit such refinement tools have significant effects on consumer behavior and marke...

This paper studies government subsidies for green technology adoption while considering the manufacturing industry’s response. Government subsidies offered directly to consumers impact the supplier’s production and pricing decisions. Our analysis expands the current understanding of the price-setting newsvendor model, incorporating the external influence from the government, who is now an addit...

This paper estimates demand for fixed-mobile bundles (quadruple play tariffs) using a database of subscribers to a single mobile operator from a single town in a European country which has full coverage with both ADSL and FTTH broadband technologies. Based on the demand estimation we find that consumer valuation of FTTH broadband in 2013 increased over time while ADSL lost on attractiveness rel...

While millions of products are sold on its retail platform, Amazon.com itself stocks and sells only a small fraction of them. Most of these products are sold by third-party sellers, who pay Amazon a fee for each unit sold. Empirical evidence clearly suggests that Amazon tends to sell high-demand products and leave long-tail products for independent sellers to offer. We investigate how a platfor...

The Theory of Restitution presumes that it is possible in principle to account for and measure deviations from racial fairness principles, that would serve as a benchmark for making restitution to black Americans, a group aggrieved and harmed by racial discrimination in the market place.To the extent that the number of black-owned rms in the market re ects, and is conditioned by consumer discri...