To measure the extent of incomplete information about brand qualities faced by consumers, recent research in marketing and economics has extended traditional static choice models to explicitly allow for consumer learning. These models tend to be complicated and make stringent assumptions such as...

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...

By using a unique data set that contains detailed information about consumer payment choice and consumers' attitudes toward each payment method, we estimate the effects of payment card rewards on consumer choice of payment methods. Our approach allows us to control for consumer heterogeneity. We...

Learning models extend the traditional discrete choice framework by postulating that consumers have incomplete information about product attributes, and that they learn about these attributes over time. In this survey we describe the literature on learning models that has developed over the past...

Models of consumer learning and inventory behavior have both proven to be valuable for explaining consumer choice dynamics. In their pure form these models assume consumers solve complex dynamic programming (DP) problems to determine optimal choices. For this reason, these models are best viewed...

This paper introduces an empirical demand model with aggregate learning and consumer heterogeneity in price sensitivity. The model is applied to the prescription drug market after patent expiration during the 80s, when the diffusion of generic drugs is fairly slow and consumer price sensitivity...