SSRN Author: Rick L. AndrewsRick L. Andrews SSRN Content
http://www.ssrn.com/author=2037527
http://www.ssrn.com/rss/en-usSun, 19 Jul 2015 02:40:37 GMTeditor@ssrn.com (Editor)Sun, 19 Jul 2015 02:40:37 GMTwebmaster@ssrn.com (WebMaster)SSRN RSS Generator 1.0REVISION: Properties of Instrumental Variables Estimation in Logit-Based Demand Models: Finite Sample ResultsEndogeneity problems in demand models occur when certain factors, unobserved by the researcher, affect both demand and the values of a marketing mix variable set by managers. For example, unobserved factors such as style, prestige, or reputation might result in higher prices for a product and higher demand for that product. If not addressed properly, endogeneity can bias the elasticities of the endogenous variable and subsequent optimization of the marketing mix. In practice, instrumental variables estimation techniques are often used to remedy an endogeneity problem. It is well known that, for linear regression models, the use of instrumental variables techniques with poor quality instruments can produce very poor parameter estimates, in some circumstances even worse than those that result from ignoring the endogeneity problem altogether. The literature has not addressed the consequences of using poor quality instruments to remedy endogeneity problems in nonlinear models, such ...
http://www.ssrn.com/abstract=2251772
http://www.ssrn.com/1326144.htmlTue, 12 Aug 2014 02:22:40 GMT