Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/72362 
Year of Publication: 
2005
Series/Report no.: 
Centre for Economic Research Working Paper Series No. WP05/03
Publisher: 
University College Dublin, Department of Economics, Dublin
Abstract: 
Given that brands (products) are location specific in terms of coverage of retail stores, we allow consumers to have preferences over location and products to carry distribution costs, alongside preferences and costs over other observable and unobservable product characteristics. We embed these considerations into Berry, Levinsohn and Pakes (1995) to jointly estimate demand and cost parameters for brands (products) in Retail Carbonated Soft Drinks. Allowing for location has a very significant impact on estimated primitives and the predictive power of the structural model. As a counterfactual exercise we show the effects on welfare of an equilibrium that results from a change in the distribution of consumer taste for location.
Subjects: 
Consumer taste for location distributions
differentiated products
discrete choice
aggregation
structural model and retail carbonated soft drinks.
JEL: 
L11
L62
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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