It is well known that random parameters specifications can generate upward sloping demands for a subset of products in the data. Nevo (2001), for example, found 0.7 percent of demands to be upward sloping. Possibly less well known is that demand system estimates can imply margins outside of the...

We study price competition in markets with a large number (in magnitude of hundreds or thousands) of potential competitors. We address two methodological challenges: simultaneity bias and high dimensionality. Simultaneity bias arises from joint determination of prices in competitive markets. We...

Consumers engage in costly search to evaluate the increasing number of product options available from online retailers. Presenting the best alternatives at the beginning reduces search costs associated with a consumer finding the right product. We use rich data on consumer click-stream behavior...