Standard discrete choice models such as logit, nested logit, and random coefficients models place very strong restrictions on how unobservable product space increases with the number of products. We argue (and show with Monte Carlo experiments) that these restrictions can lead to biased...

We discuss prospects for innovation in consumer payment instruments. We discuss recent research into consumer payments and what can be learned about consumer behavior towards new payment options. We consider three new innovations in payments: mobile payments, faster payments and digital...

This paper estimates the importance of network effects in the market for Yellow Pages. I estimate three simultaneous equations: consumer demand for usage of a directory, advertiser demand for advertising and a publisher's first-order condition (derived from profit-maximizing behaviour)....

This paper specifies and estimates a dynamic model of consumer preferences for new durable goods with persistent heterogeneous consumer tastes, rational expectations about future products and repeat purchases over time. Most new consumer durable goods, particularly consumer electronics, are...

Previous work studying the age distribution of citations for patents relies on functional form assumptions to address the co-linearity between the birth year, citation year, and age. This paper proposes a non-parametric identification strategy that uses the lag between application and grant as a...

Discrete choice models used in statistical applications typically interpret an unobservable term as the interaction of unobservable horizontal differentiation and idiosyncratic consumer preferences. An implicit assumption in most such models is that all choices are equally horizontally...

Standard discrete choice models such as logit, nested logit, and random coefficients models place very strong restrictions on how unobservable product space increases with the number of products. We argue (and show with Monte Carlo experiments) that these restrictions can lead to biased...

Voluntary standard setting organizations (SSOs) are a common feature of systems industries, where firms supply inter-operable components for a shared technology platform. These institutions promote coordinated innovation by providing a forum for collective decision-making and a potential...

This paper examines the effect of competition on second degree price discrimination in display advertising in Yellow Page directories. Recent theoretical work makes conflicting predictions about the effect of competition on curvature. Our main empirical finding is that competition increases the...