Pricing Behavior in Markets with State-Dependence in Demand
SSRN Electronic JournalPublished 1 January 2003Open access
Hai Che, Seethu Seetharaman, K. Sudhir
Citations10
Generate an AI Snapshot to get a quick, structured summary of this paper.
Study Snapshot
ObjectiveStudy objective
MethodsResearch methodology
PopulationPopulation studied
Sample sizeSample sizes
OutcomesStudy outcomes here
ResultsStudy results comes here
LimitationsResearch study limitations comes here
A concise AI-generated summary of the paper will appear here once you click Generate AI Snapshot.
Abstract
Marketing researchers have documented significant biases in estimated price elasticities from brand choice models that ignore state dependence effects. Yet empirical research on firm behavior has thus far ignored the effects of state dependence. In this paper we investigate the supply side consequences of ignoring state dependence using household-level data from the cereal category.
Keywords
Economics, Econometrics and FinanceBusiness, Management and Accounting
EconometricaAutomobile Prices in Market Equilibrium
5,065 Citations1995Steven Berry, James Levinsohn +1 more
RePEc: Research Papers in EconomicsLarge sample estimation and hypothesis testing
2,236 Citations1986Whitney K. Newey, Daniel McFadden
Marketing ScienceA Logit Model of Brand Choice Calibrated on Scanner Data
1,855 Citations1983Peter M. Guadagni, John D. C. Little
Handbook of econometricsChapter 36 Large sample estimation and hypothesis testing
1,679 Citations1994Whitney K. Newey, Daniel McFadden
The Quarterly Journal of EconomicsA Cognitive Hierarchy Model of Games
1,611 Citations2004Colin F. Camerer, Teck‐Hua Ho +1 more
The Review of Economic StudiesCompetition when Consumers have Switching Costs: An Overview with Applications to Industrial Organization, Macroeconomics, and International Trade
1,539 Citations1995Paul Klemperer
The Quarterly Journal of EconomicsMarkets with Consumer Switching Costs
1,479 Citations1987Paul Klemperer
Journal of Marketing ResearchA Probabilistic Choice Model for Market Segmentation and Elasticity Structure
1,254 Citations1989Wagner A. Kamakura, Gary J. Russell
Marketing SciencePrice Competition in a Channel Structure with a Common Retailer
1,047 Citations1991Sungchul Choi
Journal of Consumer ResearchVariety Seeking Behavior: An Interdisciplinary Review
1,006 Citations1982Leigh McAlister, Edgar A. Pessemier
Journal of Consumer ResearchA Dynamic Attribute Satiation Model of Variety-Seeking Behavior
557 Citations1982Leigh McAlister
Management ScienceEndogeneity in Brand Choice Models
534 Citations1999J. Miguel Villas‐Boas, Russell S. Winer
The RAND Journal of EconomicsTesting Static Oligopoly Models: Conduct and Cost in the Sugar Industry, 1890-1914
402 Citations1998David Genesove, Wallace P. Mullin
Journal of Marketing ResearchMeasuring Variety-Seeking and Reinforcement Behaviors Using Panel Data
389 Citations1986Barbara E. Kahn, Manohar U. Kalwani +1 more
A taxonomic framework for defining and measuring alternate forms of variety-seeking and reinforcement behavior is proposed, composed of seven simple and testable models that capture the spirit of most of the models offered in the marketing literature in this area.
Journal of Business and Economic StatisticsModeling Heterogeneity and State Dependence in Consumer Choice Behavior
365 Citations1997Michael P. Keane
Marketing ScienceStructural Analysis of Manufacturer Pricing in the Presence of a Strategic Retailer
326 Citations2001K. Sudhir
Journal of MarketingAssessing the Impact of Retail Price Promotions on Product Substitution, Complementary Purchase, and Interstore Sales Displacement
300 Citations1991Rockney G. Walters
Marketing ScienceManufacturer-Retailer Channel Interactions and Implications for Channel Power: An Empirical Investigation of Pricing in a Local Market
298 Citations2000Vrinda Kadiyali, Pradeep K. Chintagunta +1 more
Management ScienceLogit Demand Estimation Under Competitive Pricing Behavior: An Equilibrium Framework
286 Citations1998David Besanko, Sachin Gupta +1 more
Marketing ScienceA Dynamic Analysis of Market Structure Based on Panel Data
274 Citations1996Tülin Erdem
Journal of Marketing ResearchModeling Consumer Choice among SKUs
269 Citations1996Peter S. Fader, Bruce G. S. Hardie
Journal of Marketing ResearchInvestigating Household State Dependence Effects across Categories
263 Citations1999P.B. Seetharaman, Andrew Ainslie +1 more
Marketing ScienceThe Dynamic Effect of Discounting on Sales: Empirical Analysis and Normative Pricing Implications
252 Citations1999Praveen K. Kopalle, Carl F. Mela +1 more
Marketing ScienceModeling Multiple Sources of State Dependence in Random Utility Models: A Distributed Lag Approach
249 Citations2004P.B. Seetharaman
Journal of Marketing ResearchUsing a Variety-Seeking Model to Identify Substitute and Complementary Relationships among Competing Products
229 Citations1985James M. Lattin, Leigh McAlister
Marketing ScienceCompetitive Pricing Behavior in the Auto Market: A Structural Analysis
224 Citations2001K. Sudhir
Journal of Marketing ResearchStudying Consideration Effects in Empirical Choice Models Using Scanner Panel Data
220 Citations1995Rick L. Andrews, Thushara Srinivasan
The authors develop a dynamic consideration set formation model, complementary to the static model developed by Roberts and Lattin (1991), which appears to improve the multinomial logit model significantly.
Journal of the American Statistical AssociationModeling Household Purchase Behavior with Logistic Normal Regression
209 Citations1994Greg M. Allenby, Peter Lenk
Management ScienceCompetitive Price Discrimination Strategies in a Vertical Channel Using Aggregate Retail Data
202 Citations2003David Besanko, Jean‐Pierre Dubé +1 more
Marketing ScienceA Framework for Investigating Habits, “The Hand of the Past,” and Heterogeneity in Dynamic Brand Choice
187 Citations1996Rishin Roy, Pradeep K. Chintagunta +1 more
International Journal of Research in MarketingStructural analysis of competitive behavior: New Empirical Industrial Organization methods in marketing
166 Citations2001Vrinda Kadiyali, K. Sudhir +1 more
International Journal of Research in MarketingCompetitive reaction versus consumer response: Do managers overreact?
154 Citations1996Peter S. H. Leeflang, Dick R. Wittink
Management ScienceAn Experimental Study of the Impact of Judgment-Based Marketing Models
141 Citations1982Shelby H. McIntyre
In general, the decision calculus model had a beneficial impact on a broad range of decision quality measures, particularly profit achievement.
Management ScienceJudgment Based Marketing Decision Models: An Experimental Investigation of the Decision Calculus Approach
124 Citations1979Dipankar Chakravarti, Andrew Mitchell +1 more
It is indicated that a manager's experience in a limited region of a nonlinear response function does not enable him to accurately predict decision outcomes or parameters in the unfamiliar regions and that model usage may, in certain situations, actually lead to poorer decisions.
Management ScienceInvestigating Dynamic Multifirm Market Interactions in Price and Advertising
117 Citations1999Naufel J. Vilcassim, Vrinda Kadiyali +1 more
Journal of Marketing ResearchDo Household Scanner Data Provide Representative Inferences from Brand Choices: A Comparison with Store Data
109 Citations1996Sachin Gupta, Pradeep K. Chintagunta +2 more
The authors find statistical support for the hypothesis that panelist households are not representative, whether household heterogeneity is or is not accommodated.
The RAND Journal of EconomicsEntry, Its Deterrence, and Its Accommodation: A Study of the U. S. Photographic Film Industry
98 Citations1996Vrinda Kadiyali
International Journal of Research in MarketingA model of inertia and variety-seeking with marketing variables
88 Citations1998P.B. Seetharaman, Pradeep K. Chintagunta
Management SciencePricing Strategies in a Dynamic Duopoly: A Differential Game Model
88 Citations1996Pradeep K. Chintagunta, Vithala R. Rao
Journal of Marketing ResearchPrice Competition under Stockpiling and Flexible Consumption
87 Citations2002David Bell, Ganesh Iyer +1 more
Management ScienceCompetitive Pricing by a Price Leader
80 Citations1994Abhik Roy, Dominique M. Hanssens +1 more
Competition When Consumers Have Switching Costs: An Overview
79 Citations1992Paul Klemperer
Marketing SciencePredicting Competitive Response to a Major Policy Change: Combining Game-Theoretic and Empirical Analyses
63 Citations2005Kusum L. Ailawadi, Praveen K. Kopalle +1 more
Marketing LettersStructural Applications of the Discrete Choice Model
54 Citations2002Jean-PIerre DubÉ, Pradeep K. Chintagunta +7 more
Marketing ScienceA Model of Stochastic Variety-Seeking
53 Citations1994Minakshi Trivedi, Frank M. Bass +1 more
Marketing ScienceTechnical Note—Aggregating Individual Purchases to the Household Level
42 Citations1986Barbara E. Kahn, Donald G. Morrison +1 more
RePEc: Research Papers in EconomicsSpecification Tests in Econometrics
39 Citations1976Jerry A. Hausman
Marketing ScienceTry It, You Will Like It—Does Consumer Learning Lead to Competitive Price Promotions?
36 Citations2008Marshall Freimer, Dan Horsky
It is demonstrated that for the commonly used price response functions the existence of consumer learning, at a level of intensity consistent with that identified in empirical works, makes it optimal for competing brands to periodically offer price promotions.
Journal of Marketing ResearchA Multiple Ideal Point Model: Capturing Multiple Preference Effects from within an Ideal Point Framework
32 Citations2002Jack K.H. Lee, K. Sudhir +1 more
This article assesses the multiple ideal point model and an associated estimation procedure with respect to the model's ability to recover a true choice structure and empirically test the model on panel data from the powdered soft drink category.
SSRN Electronic JournalStructural Analysis of Manufacturer Pricing in the Presence of a Strategic Retailer
26 Citations2001K. Sudhir, Vrinda Kadiyali +1 more
Management SciencePricing Strategies in a Dynamic Duopoly
3 Citations1996K ChintaguntaPradeep, R RaoVithala
