This paper develops a model for capturing continuous heterogeneity in the joint distribution of reservation prices for products and bundles. Our model is derived from utility theory and captures both within-and among-subject variability. Furthermore, it provides dollarmetric reservation prices...

Structural equation models are widely used in marketing and psychometric literature to model relationships between unobserved constructs and manifest variables and to control for measurement error. Most applications of structural equation models assume that data come from a homogeneous...