Jinghai Huo

26 December 2023

Estimating Car Price Elasticity Using an Inverse Product Differentiation Logit Model

Since the seminal work of Berry, Levinsohn, and Pakes (1995), random coefficient logit (RCL) has become the workhorse model for estimating demand elasticities in markets with differentiated products using aggregated sales data. While the ability to represent flexible substitution pat...