We develop a structural demand model that captures the effect of out-of-stocks on customer choice. Our estimation method uses store-level data on sales and partial information on product availability. Our model allows for flexible substitution patterns which are based on utility maximization...

We develop a structural demand model that endogenously captures the effect of out-of-stocks on customer choice by simulating a time-varying set of available alternatives. Our estimation method uses store-level data on sales and partial information on product availability. Our model allows for...