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| Dongling Huang and Christian Rojas |
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| ''The Outside Good Bias in Logit Models of Demand with Aggregate Data'' |
| ( 2013, Vol. 33 No.1 ) |
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| The logit model is the most popular tool for estimating demand in differentiated products markets. However, in its aggregate version, practitioners have to “guess” the size outside good. We propose a way to remove the bias created by an inaccurate guess in simpler versions of the model. |
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| Keywords: Logit model, demand estimation, outside good, differentiated products |
JEL: C1 - Econometric and Statistical Methods: General
D4 - Market Structure and Pricing: General |
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| Manuscript Received : Jul 26 2012 | | Manuscript Accepted : Jan 23 2013 |
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