Demand systems for market shares

Mogens Fosgerau and André de Palma ()

MPRA Paper from University Library of Munich, Germany

Abstract: We formulate a family of direct utility functions for the consumption of a differentiated good. This is used to generate a family of demand systems with flexible substitution patterns. Demand models for market shares can be estimated by regression enabling the use of instrumental variables. Models for microdata can be estimated with maximum likelihood. Our direct utility functions are based on a generalization of the Shannon entropy. They include dual representations of all additive random utility discrete choice models and more.

Keywords: market shares; product differentiation; duality; discrete choice; entropy (search for similar items in EconPapers)
JEL-codes: C25 D01 L1 (search for similar items in EconPapers)
Date: 2015-02-02
New Economics Papers: this item is included in nep-dcm, nep-ind and nep-upt
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https://mpra.ub.uni-muenchen.de/62106/1/MPRA_paper_62106.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/69749/1/MPRA_paper_69749.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/70249/1/MPRA_paper_70249.pdf revised version (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:62106

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