Szczygielski, Krzysztof and Komisarski, Andrzej (2012): On the Existence of Quality Measures in Random Utility Models.
Download (167kB) | Preview
Random Utitly Models (RUMs) are a particularly convenient way of modelling product differentiation. In this paper we demonstrate that they can be used to examine the possibilities of creating quality measures from data on prices and sales volumes. We formulate conditions sufficient for the existence of quality measures in two broad families of RUMs: additive random utility models and pure vertical differentiation models.
|Item Type:||MPRA Paper|
|Original Title:||On the Existence of Quality Measures in Random Utility Models|
|Keywords:||quality measure, product differentiation, random utility models|
|Subjects:||D - Microeconomics > D4 - Market Structure, Pricing, and Design > D43 - Oligopoly and Other Forms of Market Imperfection
L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L15 - Information and Product Quality ; Standardization and Compatibility
C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C60 - General
|Depositing User:||Krzysztof Szczygielski|
|Date Deposited:||01. Nov 2012 16:12|
|Last Modified:||01. Nov 2015 21:52|
Anderson S.P, Palma A., Thisse, J.-F., 1992. Discrete Choice Theory of Product Differentiation, The MIT Press, Cambridge.
Cremer, Helmuth & Thisse, Jacques-Francois, 1991. "Location Models of Horizontal Differentiation: A Special Case of Vertical Differentiation Models," Journal of Industrial Economics, Wiley Blackwell, vol. 39(4), pages 383-90, June.
Hallak J.C., Schott, P.K , 2011. Estimating Cross-Country Differences in Product Quality, The Quarterly Journal of Economics, Vol 126, 414-474.
Khandelwal, A., 2010. The Long and Short of Quality Ladders, Review of Economic Studies 66.4, pp. 1450-1476.
Marley, A.A.J, 2002. Random utility models and their applications: recent developments, Mathematical Social Sciences, Volume 43, Issue 3, July 2002, pp. 289-302
Mussa, M., Rosen, S. 1978. Monopoly and product quality, Journal of Economic Theory, 18 (August 1978), pp. 301-317;
Shaked, A., Sutton, J., 1983. Natural Oligopolies, Econometrica, Vol. 51, No. 5, pp. 1469-1483
Suck R, 2002. Independent Random Utility Representations, Mathematical Social Sciences, Volume 43, Issue 3, July 2002, pp. 371-389.
Walker, J., Ben-Akiva M, Generalized random utility model, Mathematical Social Sciences, Volume 43, Issue 3, July 2002, pp. 303-343.