Consumer demand with unobservable product attributes : part I: theory
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http://hdl.handle.net/11250/180869Utgivelsesdato
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- Discussion Papers [1002]
Sammendrag
This paper develops a new framework for empirical modelling of consumer demand with particular reference
to products that are differentiated with respect to quality and location attributes. The point of departure is a
flexible representation of the distribution of product attributes and consumer tastes. From this representation
and additional behavioral assumptions we derive a structural model for the distribution of the chosen
product attributes and the associated quantities. Furthermore, an explicit relationship between the
distribution of prices and unit values is obtained.
Keywords: Price distribution, differentiated products, quality attributes, hedonic price indexes.
JEL classification: C25, C43, D11