In this paper, we develop an empirical demand model and an estimation strategy that can account for excess demand, and the unobserved component of product quality. Our methodology allows us to quantify the extent of rationing, price and quality elasticities, and shed light on the potential...

This paper provides a step-by-step guide to estimating infinite horizon discrete choice dynamic programming (DDP) models using a new Bayesian estimation algorithm (Imai, Jain and Ching, Econometrica 77:1865-1899, 2009) (IJC). In the conventional nested fixed point algorithm, most of the...

In the pharmaceutical industry, measuring the importance of informative and persuasive roles of detailing is crucial for both drug manufacturers and policy makers. However, little progress has been made in disentangling these two roles of detailing in empirical research. In this paper, we...

Structural models have become a frontier tool in business and economics research. In this survey, we discuss the literature on structural models for the prescription drug market, which has attracted a significant attention from researchers in marketing and economics, and related fields. The...

Efforts to reduce inefficient healthcare spending are prevalent across the developed world. Among available policy options, the substitution of brand name for generic drugs is of particular interest because it can deliver large savings without objective quality sacrifices. These policies are...

Walmart stores often bring some negative consequences to their neighborhoods. As a result, Walmart frequently faces strong opposition when they plan to launch new stores. Charitable donations could be a way to compensate the local communities and alleviate the opposition. By leveraging our newly...

Over the past ten years there has been increased recognition of the importance of publicity as a means of generating product awareness. Despite this, previous research has seldom investigated the impact of publicity on demand. We contribute to the literature by (i) proposing a new method for the...

This paper summarizes four stylized facts about the prescription drug markets after patent expiration during the 80s: (i) generic firms entered the market at different points of time after patent expiration and they seldom exited; (ii) the brand-name price remained much higher than generic prices,...

We develop a structural consumer lifecycle model to investigate consumers’ adoption and usage decisions of ATM cards. If consumers are forward-looking with a known discount factor, our framework can control for the heterogeneous lifespan faced by consumers of different ages, and hence measure...

Workers often have unobserved characteristics, e.g., soft skills, that are important for teamwork. In this paper, we formulate and estimate a model of teamwork that imposes no functional form restrictions on the complementarity between different unobserved types of workers. Our modeling...