Moon, Hyungsik Roger; Shum, Matthew; Weidner, Martin - Centre for Microdata Methods and Practice (CEMMAP) - 2012
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...