Consumer learning, switching costs, and heterogeneity: A structural examination

Quantitative Marketing and Economics

Volumn 9, Issue 1, 2011, Pages 25-70

  Osborne, Matthew ^a  

^a Bureau of Economic Analysis   (United States)

Author keywords

Bayesian econometrics; Consumer learning; Discrete choice; Dynamic programming; Switching costs

Indexed keywords

EID: 79952699661     PISSN: 15707156     EISSN: 1573711X     Source Type: Journal    
DOI: 10.1007/s11129-010-9092-x     Document Type: Article

References (36)

1. D Ackerberg 2003 Advertising, learning, and consumer choice in experience goods markets: A structural empirical examination International Economic Review 44 3 1007 1040 10.1111/1468-2354.t01-2-00098 (Pubitemid 37001801)
2. D Ackerberg 2009 A new use of importance sampling to reduce computational burden in simulation estimation Quantitative Marketing and Economics 7 343 376 10.1007/s11129-009-9074-z
3. D Cannon A Watzman L Lazorko J Bishop T Shafers P Kemezis, et al. 1987 Soaps and detergents: A basketful of high-tech products Chemical Week 140 22 33
4. Chamberlain, G. (1985). Heterogeneity, omitted variable bias, and duration dependence. In J. Heckman & B. Singer (Eds.), Longitudinal analysis of labor market data (pp. 3-38). Cambridge, New York and Sidney: Cambridge University Press.
5. P Chintagunta 1999 Variety seeking, purchase timing, and the lightning bolt brand choice model Management Science 45 4 486 498 10.1287/mnsc.45.4.486
6. P Chintagunta E Kyriazidou J Perktold 2001 Panel data analysis of household brand choices Journal of Econometrics 103 1-2 111 153 10.1016/S0304-4076(01)00041-0 (Pubitemid 33645270)
7. G Crawford M Shum 2005 Uncertainty and learning in pharmaceutical demand Econometrica 37 1137 1174 10.1111/j.1468-0262.2005.00612.x (Pubitemid 41638527)
8. DeGroot, M. (1970). Optimal statistical decisions. McGraw-Hill, Inc.
9. Dubé, J., Hitsch, G., & Rossi, P. (2008). Do switching costs make markets less competitive? Working Paper.
10. T Erdem 1996 A dynamic analysis of market structure based on panel data Marketing Science 15 4 359 378 10.1287/mksc.15.4.359
11. T Erdem S Imai M Keane 2003 A model of consumer brand and quantity choice dynamics under price uncertainty Quantitative Marketing and Economics 1 1 5 64 10.1023/A:1023536326497
12. T Erdem M Keane 1996 Decision-making under uncertainty: Capturing dynamic brand choice processes in turbulent consumer goods markets Marketing Science 15 1 1 20 10.1287/mksc.15.1.1
13. T Erdem M Keane T Öncü J Strebel 2005 Learning about computers: An analysis of information search and technology Quantitative Marketing and Economics 3 207 247 10.1007/s11129-005-0269-7 (Pubitemid 41300611)
14. T Erdem M Keane B Sun 1999 Missing price and coupon availability data in scanner panels: Correcting for the self-selection bias in choice model parameters Journal of Econometrics 89 177 196 10.1016/S0304-4076(98)00060-8 (Pubitemid 128416650)
15. Farrell, J., & Klemperer, P. (2007). Coordination and lock-in: Competition with switching costs and network effects. In M. Armstrong & R. Porter (Eds.), Handbook of industrial organization (Vol. 3). North-Holland: Elsevier.
16. A Gelman D Rubin 1992 Inference from iterative simulation using multiple sequences Statistical Science 7 457 472 10.1214/ss/1177011136
17. M Givon D Horsky 1979 Application of a composite stochastic model of brand choice Journal of Marketing Research 16 258 267 10.2307/3150689
18. Goettler, R., & Clay, K. (2010). Tariff choice with consumer learning and switching costs. Working Paper.
19. W Hartmann 2006 Intertemporal effects of consumption and their implications for demand elasticity estimates Quantitative Marketing and Economics 4 4 325 349 10.1007/s11129-006-9012-2 (Pubitemid 44768833)
20. I Hendel A Nevo 2006 Measuring the implications of sales and consumer inventory behavior Econometrica 74 1637 1673 10.1111/j.1468-0262.2006.00721.x (Pubitemid 44673209)
21. S Imai N Jain A Ching 2009 Bayesian estimation of dynamic discrete choice models Econometrica 7 6 1865 1899
22. M Israel 2005 Services as experience goods: An empirical examination of consumer learning in automobile insurance American Economic Review 95 5 1444 1463 10.1257/000282805775014335 (Pubitemid 43550739)
23. Johnson, N., & Kotz, S. (1970). Continuous multivariate distributions I. New York: Wiley.
24. P Klemperer 1995 Competition when consumers have switching costs: An overview with applications to industrial organization, macroeconomics, and international trade Review of Economic Studies 62 515 539 10.2307/2298075
25. L McAlister E Pessemier 1982 Variety-seeking behavior: An interdisciplinary review The Journal of Consumer Research 9 3 311 322 10.1086/208926
26. N Moshkin R Shachar 2002 The asymmetric information model of state dependence Marketing Science 21 435 454 10.1287/mksc.21.4.435.136
27. Norets, A. (2007). Estimation of dynamic discrete choice models using artifical neural network approximations. Working Paper.
28. Norets, A. (2009a). Implementation of bayesian inference in dynamic discrete choice models. Working Paper.
29. A Norets 2009 Inference in dynamic discrete choice models with serially correlated unobserved state variables Econometrica 77 1665 1682 10.3982/ECTA7292
30. Osborne, M. (2006). Consumer learning and habit formation in packaged goods markets. Ph.D. thesis, Stanford University.
31. R Pollack 1970 Habit formation and dynamic demand functions Journal of Political Economy 78 4 745 763 10.1086/259667
32. Rossi, P., Allenby, G., & McCulloch, R. (2005). Bayesian statistics and marketing. Wiley.
33. R Roy P Chintagunta S Haldar 1996 A framework for investigating habits, the hand of the past, and heterogeneity in dynamic brand choice Marketing Science 15 3 280 289 10.1287/mksc.15.3.280
34. M Shum 2004 Does advertising overcome brand loyalty? Evidence from the breakfast-cereals market Journal of Economics and Management Strategy 13 241 272 10.1111/j.1530-9134.2004.00010.x (Pubitemid 38706736)
35. F Spinnewyn 1981 Rational habit formation European Economic Review 15 91 109 10.1016/0014-2921(81)90068-4
36. Train, K. (2003). Discrete choice methods with simulation. New York: Cambridge University Press.