Abstract and Keywords
This chapter discusses the literature on consumer demand models for panel data. The literature is vast because of the widespread availability of supermarket scanner data that track consumer goods purchases at the individual or household level over many weeks. Given that the literature is so large, this chapter does not attempt to survey all important papers. Instead, it focuses on the main research questions in the area. The first main objective of the literature has been to understand the underlying sources of persistence in brand choices—in particular, to distinguish heterogeneity from state dependence. The second has been to distinguish among alternative explanations for state dependence. The third has been to understand the dynamics of demand—especially the sources of the increase in demand when a brand is on sale. The literature has made substantial progress in all these areas. Estimation methods for panel data discrete choice models are also discussed.
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