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https://hdl.handle.net/10419/53909
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DC Field | Value | Language |
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dc.contributor.author | Wakamori, Naoki | en |
dc.date.accessioned | 2011-12-06 | - |
dc.date.accessioned | 2011-12-15T12:58:04Z | - |
dc.date.available | 2011-12-15T12:58:04Z | - |
dc.date.issued | 2011 | - |
dc.identifier.pi | doi:10.34989/swp-2011-27 | en |
dc.identifier.uri | http://hdl.handle.net/10419/53909 | - |
dc.description.abstract | Consumers often purchase more than one differentiated product, assembling a portfolio, which might potentially affect substitution patterns of demand and, as a consequence, oligopolistic firms' pricing strategies. This paper studies such consumers' portfolio considerations by developing a structural model that allows for flexible complementarities/substitutabilities depending on consumer attributes and product characteristics. I estimate the model using Japanese household-level data on automobile purchasing decisions. My estimates suggest that complementarities arise when households purchase a combination of one small automobile and one minivan as their portfolio. Ignoring such effects leads to a overstated counterfactual analysis. Simulation results suggest that a policy proposal of repealing the current tax subsidies for small ecofriendly automobiles would decrease the demand for those automobiles by 9%; less than the 14% drop predicted by a standard single discrete choice model. | en |
dc.language.iso | eng | en |
dc.publisher | |aBank of Canada |cOttawa | en |
dc.relation.ispartofseries | |aBank of Canada Working Paper |x2011-27 | en |
dc.subject.jel | D4 | en |
dc.subject.jel | L5 | en |
dc.subject.jel | Q5 | en |
dc.subject.ddc | 330 | en |
dc.subject.keyword | Economic models | en |
dc.subject.keyword | Market structure and pricing | en |
dc.title | Portfolio considerations in differentiated product purchases: An application to the Japanese automobile market | - |
dc.type | Working Paper | en |
dc.identifier.ppn | 678352178 | en |
dc.rights | http://www.econstor.eu/dspace/Nutzungsbedingungen | en |
dc.identifier.repec | RePEc:bca:bocawp:11-27 | en |
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