Moon, Hyungsik Roger; Shum, Matthew; Weidner, Martin - Centre for Microdata Methods and Practice (CEMMAP) - 2014
We extend the Berry, Levinsohn and Pakes (BLP, 1995) random coefficients discrete choice demand model, which underlies much recent empirical work in IO. We add interactive fixed effects in the form of a factor structure on the unobserved product characteristics. The interactive fixed effects can...