The Pure Characteristics Demand Model

By Steven T. Berry, Ariel Pakes. 2007

262 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Marketing

View Paper: https://www.semanticscholar.org/paper/64bf288d4f69243e4a142e919b4f3dadacd68597

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Citations in the corpus

Econometric Tools for Analyzing Market Outcomes (2007, background): “Berry and Pakes (2005) and Bajari and Benkard (2005) discuss two different versions of the " pure characteristics " model with " no " s. Berry and Pakes (2005) consider a discrete choice version of the model, with a utility function of u ij = x j β i − α i p j + ξ j , (17) where β i and α i are…”
Automobile Replacement: A Dynamic Structural Approach (2011, unknown): “Using the definitions (7), (8), (9) and the assumption (10), I can rewrite the Bellman equations as: Case-1: ek 6= 0”
Learning-By-Doing, Organizational Forgetting, and Industry Dynamics (2007, unknown): “…be guaranteed to find all equilibria.12 As we 11See Zangwill & Garcia (1981) for an introduction to homotopy methods, Schmedders (1998, 1999) for an application to general equilibrium models with incomplete asset markets, and Berry & Pakes (2006) for an application to estimating demand systems.”
Cupid’s Invisible Hand: Social Surplus and Identification in Matching Models (2015, unknown): “The case T = 0 yields the pure characteristics model of Berry and Pakes (2007) described at greater length in Appendix B.4.”
Best practices for differentiated products demand estimation with PyBLP (2020, methodology): “Other common modifications to the BLP model that are beyond the scope of this article include 4 the pure characteristics model of Berry and Pakes (2007) and the inclusion of micro moments, as in Petrin (2002) and Berry et al. (2004a).6”
The Welfare Effects of Bundling in Multichannel Television Markets (2012, background): “Furthermore, if an observed bundle ismodified by adding or removing a 13Typically this variance term is not identified separately, see Berry and Pakes (2007) for detail.”
The New Economics of Equilibrium Sorting and Policy Evaluation Using Housing Markets (2013, background): “23 The PC label stems from Berry and Pakes (2007), who labeled this property the " pure characteristics " approach to modeling the demand for a differentiated good to distinguish it from " random utility models " that assume idiosyncratic taste shocks.”
Order in Product Customization Decisions: Evidence from Field Experiments (2010, background): “…decisions 275 Differentiated product models are a popular econometric tool to estimate demand for a wide variety of goods, including housing, wines, automobiles, and computers (McFadden 1974; Rosen 1974; Epple 1987; Berry, Levinsohn, and Pakes 1995; Bajari and Benkard 2005; Berry and Pakes 2007).”
Designing Ranking Systems for Hotels on Travel Search Engines by Mining User-Generated and Crowdsourced Content (2012, methodology): “The former probability is similar to the choice probability in BLP and the latter to that of the PCM.”