This study develops and estimates a model to empirically identify two behavioral effects (namely consumption flexibility and state dependence) that may underlie temporal and horizontal assortment choice, using scanner panel data where consumption information is unavailable. The proposed approach...

The concept of diminishing marginal utility is a cornerstone of economic theory. The consumption of a good typically creates satiation that diminishes the marginal utility of consuming more. Temporal satiation induces consumers to increase their stimulation level by seeking variety and therefore...

This research marries scanner panel choice data of consumers in single member households to their survey-based perception data and draws upon behavioral and modeling research to contribute to the variety seeking literature. It presents a new consumer-based measure of choice variety based on...

Within this study selected empirical results out of a 3 year project concerning the analysis of Austrian panel data are presented. Raw data coming from the most important Austrian consumer tracking panel was analyzed with respect to consumers’ variety seeking and brand choice behavior. It is...

We investigate price competition between firms in markets characterized by consumer variety seeking. While previous research has addressed the effect of consumer inertia on prices, there exists no research on the effects of variety seeking on price competition. Our study fills this gap in the...

A concept of variety seeking behavior is modeled as a stochastic brand choice model. The model yields a measure of variety seeking for each individual consumer. Panel data for 28 products are analyzed for each household and the possibility of market segmentation by variety seeking behavior is...

In this paper, we propose and test a stochastic model of consumer choice that incorporates attribute-based variety seeking. Our stochastic variety-seeking model (SVS) has nested within it a fixed variety-seeking model, a zero-order model of choice, and a first-order (“pure variety”) model....