Estimation of Store Choice Model with Endogenous Shopping Bundles

Content Provider	Semantic Scholar
Author	Kim, Hyunchul
Copyright Year	2014
Abstract	This paper examines the effects of measurement errors in household shopping plans and price beliefs on the estimates of price elasticities in retail outlet choice. Previous studies parsimoniously use realized purchases as a proxy for unobserved shopping lists and assume homogenous price expectation across all households and over the entire sample period. This measurement error in forecasting expected basket costs introduces attenuation bias in storelevel price elasticities toward zero. I show that the bias is reduced with my improved measures of expected basket costs by estimating shopping lists of households and by constructing household-, time-, store-, and goods-specific price expectations. ∗This paper is based on various chapters of my doctoral dissertation. I am grateful to my advisor, Amil Petrin, for his continuous advice and support at the University of Minnesota. I would like to thank Pat Bajari, Tom Holmes, Kyoo-il Kim, Om Narasimhan, Elena Pastorino, Maria Ana Vitorino, and Joel Waldfogel for their many useful comments and suggestions. I am also indebted to the seminar participants at the University of Minnesota, the Pennsylvania State University, the University of Arkansas, Sungkyunkwan University, and Yonsei University, as well as conference participants at the 2014 IIOC. All remaining errors are mine. Correspondence: Hyunchul Kim, Department of Economics, Sungkyunkwan University, 25-2, Sungkyunkwan-ro, Jongno-gu, Seoul, 110-745, Korea, Tel: +82 2 760 0147, E-mail: hchkim@skku.edu
File Format	PDF HTM / HTML
Alternate Webpage(s)	http://www.cirje.e.u-tokyo.ac.jp/research/workshops/micro/micropaper14/micro0520.pdf
Language	English
Access Restriction	Open
Subject Keyword	Adie Syndrome Advance Directive - Proxy Ana (programming language) Arabic numeral 0 C date and time functions Choice Behavior Choice modelling Consumer-generated advertising Detergents Email Equipment and supply inventories Estimated Etoposide/Ifosfamide/Mesna/Mitoxantrone Face Financial cost Fixed effects model Functional specification Genetic Heterogeneity Heterogeneous-Nuclear Ribonucleoproteins Inference Inventory Laundry Service, Hospital Manufactured Supplies Milk (body substance) Nonlinear system Observable Occam's razor Occur (action) Persistence (computer science) Projections and Predictions Proxy server Purchasing Quantum information Regression dilution Robustness (computer science) Second Obtuse Marginal Branch Artery Shock Smoothing (statistical technique) Tom Toothpaste Uniform Resource Identifier Utility Yogurt buying explanation xian ling gu bao
Content Type	Text
Resource Type	Article