Valuation of New Goods under Perfect and Imperfect Competition

Hausman, Jerry A.

doi:10.3386/w4970

Cited by 489 publications

(544 citation statements)

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“…1 Information about plan bene…ts is obtained from the Medicare Plan Compare database, which provides information on bene…t packages for each plan. 20 Bene…t information extracted from this database include: the premium, the deductible, the out-of-pocket cost limit (i.e. the maximum an enrollee pays out-of-pocket), an indicator for drug insurance, whether the plan requires a referral to see a specialist, and the size of the physician network.…”

Section: Data and Variablesmentioning

confidence: 99%

“…The third set of instruments is based on contract observations in other geographic markets similar to the strategy of Hausman (1997) and Nevo (2001). The basic idea behind selecting premium and OOPC values in other markets as instruments is that common shocks to marginal cost will be re ‡ected in changes in these variables in other counties 3 0 The state-time dummy variables and county …xed e¤ects may also help control for changes in the outside alternative due to the introduction of Medicare Part D drug plan or changes in the Medicaid program.…”

Section: Descriptive Statisticsmentioning

confidence: 99%

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The value of coverage in the medicare advantage insurance market

Dunn

2010

Journal of Health Economics

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This paper examines the impact of coverage on demand for health insurance in the Medicare Advantage (MA) insurance market. Estimating the e¤ects of coverage on demand poses a challenge for researchers who must must consider both the hundreds of bene…ts that a¤ect out-of-pocket costs (OOPC) to consumers, but also the endogeneity of coverage. These problems are addressed in a discrete choice demand model by employing a unique measure of OOPC that considers a consumer's expected payments for a …xed bundle of health services and applying instrumental variable techniques to address potential endogneity bias. The results of the demand model show that OOPC have a signi…cant e¤ect on consumer surplus and that not instrumenting for OOPC results in a signi…cant underestimate of the value of coverage.

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Section: Data and Variablesmentioning

confidence: 99%

Section: Descriptive Statisticsmentioning

confidence: 99%

The value of coverage in the medicare advantage insurance market

Dunn

2010

Journal of Health Economics

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“…The Consumer Expenditure Survey claims that Americans between the ages of 35 and 44 hold the largest share of soft drink consumption. 23 Interestingly, Denver has been one of the few city-markets in which Pepsi outperforms Coca-Cola both in the cola segment and for overall CSDs. 24 Using the Denver data, I limit my analysis to CSD products only.…”

Section: Datamentioning

confidence: 99%

“…Beverage Industry, 86, 47-51. 23 Sarah Theodore (1997), "Soft drink demographics hinge on age and demographics," Beverage Industry, 88, 48-50. 25 Higgins, Kaplan, McDonald and Tollison (1995) do …nd evidence of competitive responses from other beverage categories using residual demand analysis.…”

Section: Datamentioning

confidence: 99%

Product Differentiation and Mergers in the Carbonated Soft Drink Industry

Dubé

2005

Economics Manag Strategy

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractEconomists increasingly rely on structural methods to assess mergers in di¤erentiated products industries. They typically estimate aggregate demand models using market level data, requiring a trade-o¤ between the scope of products considered and the implied underlying consumer behavior. Instead, I use a unique micro data set containing detailed transaction-level information for a panel of household purchases of carbonated soft drinks. I estimate household demand for soft drinks, allowing for more realistic multi-item purchase behavior for a large set of product alternatives. Integrating across the predicted household purchases, I combine aggregate demand with a model of static oligopoly. Finally, I simulate the competitive impact of several soft drink mergers on equilibrium prices and quantities. I compare my results with the popular aggregate mixed logit model. (JEL L15, C5, D4)

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“…Hausman (1997) applies this across segments but allows fl exibility within segments. Hausman (1997) applies this approach in studying the demand for ready-to-eat cereals, dividing products into approach in studying the demand for ready-to-eat cereals, dividing products into adult, family, and kids' cereals. Another strategy is to describe products in terms of a adult, family, and kids' cereals.…”

Section: Estimating Demand In Imperfectly Competitive Markets Estimatmentioning

confidence: 99%

Empirical Industrial Organization: A Progress Report

Einav

Levin

2010

Journal of Economic Perspectives

115

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T T he fi eld of industrial organization has made dramatic advances over the he fi eld of industrial organization has made dramatic advances over the last few decades in developing empirical methods for analyzing imperfect last few decades in developing empirical methods for analyzing imperfect competition and the organization of markets. These new methods have competition and the organization of markets. These new methods have diffused widely: into merger reviews and antitrust litigation, regulatory decision diffused widely: into merger reviews and antitrust litigation, regulatory decision making, price setting by retailers, the design of auctions and marketplaces, and making, price setting by retailers, the design of auctions and marketplaces, and into neighboring fi elds in economics, marketing, and engineering. Increasing into neighboring fi elds in economics, marketing, and engineering. Increasing access to fi rm-level data and in some cases the ability to cooperate with fi rms or access to fi rm-level data and in some cases the ability to cooperate with fi rms or governments in experimental research designs is offering new settings and opporgovernments in experimental research designs is offering new settings and opportunities to apply these ideas in empirical work. tunities to apply these ideas in empirical work.This essay begins with a sketch of how the fi eld has evolved to its current state, This essay begins with a sketch of how the fi eld has evolved to its current state, in particular how the fi eld's emphasis has shifted over time from attempts to relate in particular how the fi eld's emphasis has shifted over time from attempts to relate aggregate measures across industries toward more focused studies of individual aggregate measures across industries toward more focused studies of individual industries. The second and primary part of the essay describes several active areas industries. The second and primary part of the essay describes several active areas of inquiry. While this is in some sense a survey, our goal is not to be comprehenof inquiry. While this is in some sense a survey, our goal is not to be comprehensive but to highlight key ideas and illustrate how modern research has approached sive but to highlight key ideas and illustrate how modern research has approached different problems. We also discuss some of the impacts of this research and specify different problems. We also discuss some of the impacts of this research and specify topics where research efforts have been more or less successful. The last section topics where research efforts have been more or less successful. The last section steps back to offer a broader perspective. We address some current debates about steps back to offer a broader perspective. We address some current debates about research emphasis in the fi eld, and more broadly about empirical methods, and research emphasis in the fi eld, and more broadly about empirical methods, and offer some thoughts on where future research might go. offer some thoughts on wh...

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Valuation of New Goods under Perfect and Imperfect Competition

Abstract: The Consumer Price Index (CPI)

Cited by 489 publications

References 9 publications

The value of coverage in the medicare advantage insurance market

The value of coverage in the medicare advantage insurance market

Product Differentiation and Mergers in the Carbonated Soft Drink Industry

Empirical Industrial Organization: A Progress Report

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