Abstract
Structural models are econometric representations of decision-making behavior. Their key characteristic is that they frequently represent quantities of sales and price data as outcomes of goal-directed decision-making by agents. A litmus test of the structural nature of an empirical model is therefore answering the question "where in the model are the agents’ decisions?" or in short “who maximizes what?”.
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Notes
- 1.
- 2.
See also Chap. 15.
- 3.
For computational details see, for example, Nevo (2001).
- 4.
- 5.
In this paper, Vitorino also discusses and proposes a solution to the multiple-equilibria problem that is present in the entry literature.
- 6.
See Chap. 17.
- 7.
See Chap. 15.
- 8.
The following text is based on Albuquerque and Bronnenberg (2012).
- 9.
See Sect. 8.2.3.1 in Vol. I.
- 10.
See also Sect. 9.5.
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Albuquerque, P., Bronnenberg, B.J. (2017). Structural Models. In: Leeflang, P., Wieringa, J., Bijmolt, T., Pauwels, K. (eds) Advanced Methods for Modeling Markets. International Series in Quantitative Marketing. Springer, Cham. https://doi.org/10.1007/978-3-319-53469-5_7
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