Monday, October 17, 2011
Posted by D. Daniel Sokol
Aviv Nevo, Northwestern University - Department of Economics provides some interesting writing on Empirical Models of Consumer Behavior.
ABSTRACT: Models of consumer behavior play a key role in modern empirical industrial organization. In this review, I survey some of the models used in this literature. In particular, I discuss two commonly used demand systems: multistage budgeting approaches and discrete choice models. I motivate their use and highlight some key modeling assumptions. I next briefly discuss key issues of estimation and conclude by summarizing some extensions.