This paper contains an empirical dynamic model of supply and demand in the market for digital cameras with endogenous product innovation. On the demand side, heterogeneous consumers time optimally the purchase of goods depending on the expected evolution of prices and characteristics of...

This paper develops a methodology to estimate models of demand for differentiated durable goods with fully heterogeneous consumers. It expands standard discrete choice models by endogenizing purchase timing decisions using a participation function which is the result of the consumers’...