Gandhi, Amit; Lu, Zhentong; Shi, Xiaoxia - In: Quantitative economics : QE ; journal of the … 14 (2023) 2, pp. 341-418
In this paper, we introduce a new approach to estimating differentiated product demand systems that allows for products … with zero sales in the data. Zeroes in demand are a common problem in differentiated product markets, but fall outside the … scope of existing demand estimation techniques. We show that with a lower bound imposed on the expected sales quantities, we …