This article assesses the unilateral effects on prices of a merger in the Portuguese mobile telephony market. We use aggregate quarterly data from 1999 to 2005 and a nested logit model to estimate the price elasticities of demand and the marginal costs of subscription of mobile telephony. Given these estimates, we simulate the effects of the merger. We find that the available mobile telephony s...

— Using a nested multinomial logit model, this study investigates the demand ‘‘reduction’’ and ‘‘diversion’’ effects of user fees in rural areas of Ethiopia. The results reveal that an increase in user fees of public clinics, which are the most widely used alternative, can have a significant demand reduction effect on the poorest of the poor. This implies that despite cost recovery has been adv...

This paper considers alternative means of rationing access to outdoor recreation areas, focussing on rock-climbing sites in Scotland. Such rationing is deemed increasingly important due to crowding and environmental externalities, yet cultural and practical considerations mean that a system of simple entry fees to mountain areas is unrealistic. We use a repeated nested multinomial logit model t...

We consider assortment optimization problems when customers choose according to the nested logit model and there is a capacity constraint limiting the total capacity consumption of all products offered in all nests. When each product consumes one unit of capacity, our capacity constraint limits the cardinality of the offered assortment. For the cardinality constrained case, we develop an effici...

Despite traditional four-step model is the most prominent model in majority of travel demand analysis, it does not represent the potential correlations within different travel dimensions. As a result, some researches have suggested the use of choice modelling instead. However, most of them have represented travel dimensions individually rather than jointly. This research aims to fill this gap t...

Prominent features of differentiated product markets are segmentation and proliferation blurring the boundaries between segments. I develop a tractable demand model, Ordered Nested Logit, which allows for asymmetric substitution apply model to automobile market where segments ordered from small luxury. find that consumers, when substituting outside their vehicle segment, more likely switch neig...

When design decisions are informed by consumer choice models, uncertainty in the choice model and its share predictions creates uncertainty for the designer. We take a first step in investigating the variation in and accuracy of market share predictions by characterizing fit and forecast accuracy of multinomial logit, mixed logit, and nested logit models over a variety of utility function speci...

Less than a handful of papers have used data on individuals to examine people’s decisions about which school to attend. This paper develops a nested logit model of the determinants of choice of a graduate business school. Data are drawn from a new longitudinal survey of registrants for the Graduate Management Admission Test. One finding is that elasticity of school choice with respect to tuitio...

This paper presents an oligopoly model of multiproduct firms in which firms are endowed with possibly different marginal cost and product quality, and choose product ranges before product market competition. Consistent with empirical evidence on a positive relationship between firm size and product diversification, the analysis suggests that firms with higher quality-cost margins typically have...

Existing studies of judicial decisionmaking have found that elected judges are more likely to dissent and to oppose judges from the same party. These findings are explained by elected judges having stronger preferences for risk or being more independent. In this paper, I offer an alternative explanation: judges’ efforts to be retained should yield different patterns of opposition among judges f...