Hortaçsu, Ali; Natan, Olivia; Parsley, Hayden; … - 2021
We propose an approach to modeling and estimating discrete choice demand that allows for a large number of zero sale … empirical application of air travel demand where product-level sales are sparse. We find considerable variation in demand over … time. Periods of peak demand feature both larger market sizes and consumers with higher willingness to pay. This amplifies …