Understanding the frequencies of purchase and the average purchased quantities is important for marketing strategies such as the loss-leader pricing strategy. We develop a microeconomic model where the total purchases of goods are determined by demand systems for the frequencies of purchases and the average quantities purchased, conditional on positive purchase frequencies. An econometric model is developed to estimate the two systems by a Bayesian estimation method, which allows for an unrestricted covariance structure within each system. An empirical example demonstrates how the estimated model can be used to formulate a profitable loss-leader pricing strategy for fish in France.

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In the standard single-site travel cost model, it is assumed that time spent on-site is exogenous. This assumption results in a willingness to pay (WTP) for time on-site of zero, which may be less realistic for many urban parks that are frequently visited by local residents.We develop a single-site travel cost model where a visitor simultaneously chooses the number of visits and how much time to spend on-site. In this model, the WTP estimate includes the price of the trip and the price of time spent on-site. Next, we develop a two-part hurdle model with non-zero correlation between the number of trips and time spent on-site.We use data gathered in an urban park in Iceland to estimate the model. The estimated WTP values are more than twice as high as the estimates of the standard single-site model.

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