Panel data analysis of household brand choices

Pradeep Chintagunta, Aikaterini Kyriazidou, Josef Perktold

Research output: Contribution to journalArticle

Abstract

The paper examines theoretical and empirical issues arising in panel data studies of household brand choices. We develop a dynamic utility maximization model with habit formation that yields a discrete choice model that is linear in a vector of observable individual and brand characteristics, the lagged choice, an unobservable permanent individual/brand-specific effect, and an unobservable time-varying error component. We estimate the model using panel data on household yogurt purchases. We compare traditional estimation procedures with the method recently proposed by Honoré and Kyriazidou. Panel data discrete choice models with lagged dependent variables, Econometrica 68 839-874. The methods' robustness with respect to underlying assumptions is investigated in Monte Carlo simulations.

Original languageEnglish (US)
Pages (from-to)111-153
Number of pages43
JournalJournal of Econometrics
Volume103
Issue number1-2
DOIs
StatePublished - Jul 1 2001

Fingerprint

Panel data analysis
Panel data
Household
Brand choice
Discrete choice models
Error components
Purchase
Utility maximization
Habit formation
Monte Carlo simulation
Time-varying
Robustness

Keywords

  • Brand choice
  • Dynamic discrete choice
  • Panel data

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

Chintagunta, P., Kyriazidou, A., & Perktold, J. (2001). Panel data analysis of household brand choices. Journal of Econometrics, 103(1-2), 111-153. https://doi.org/10.1016/S0304-4076(01)00041-0

Panel data analysis of household brand choices. / Chintagunta, Pradeep; Kyriazidou, Aikaterini; Perktold, Josef.

In: Journal of Econometrics, Vol. 103, No. 1-2, 01.07.2001, p. 111-153.

Research output: Contribution to journalArticle

Chintagunta, P, Kyriazidou, A & Perktold, J 2001, 'Panel data analysis of household brand choices', Journal of Econometrics, vol. 103, no. 1-2, pp. 111-153. https://doi.org/10.1016/S0304-4076(01)00041-0
Chintagunta, Pradeep ; Kyriazidou, Aikaterini ; Perktold, Josef. / Panel data analysis of household brand choices. In: Journal of Econometrics. 2001 ; Vol. 103, No. 1-2. pp. 111-153.
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