Panel data analysis of household brand choices

Pradeep Chintagunta, Ekaterini Kyriazidou, Josef Perktold

Research output: Contribution to journalArticlepeer-review

Abstract

The paper examines theoretical and empirical issues arising in panel data studies of household brand choices. We develop a dynamic utility maximization model with habit formation that yields a discrete choice model that is linear in a vector of observable individual and brand characteristics, the lagged choice, an unobservable permanent individual/brand-specific effect, and an unobservable time-varying error component. We estimate the model using panel data on household yogurt purchases. We compare traditional estimation procedures with the method recently proposed by Honoré and Kyriazidou. Panel data discrete choice models with lagged dependent variables, Econometrica 68 839-874. The methods' robustness with respect to underlying assumptions is investigated in Monte Carlo simulations.

Original languageEnglish (US)
Pages (from-to)111-153
Number of pages43
JournalJournal of Econometrics
Volume103
Issue number1-2
DOIs
StatePublished - Jul 2001

Keywords

  • Brand choice
  • Dynamic discrete choice
  • Panel data

ASJC Scopus subject areas

  • Economics and Econometrics

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