Consumer Learning and Habit Formation with Multiple Brand Choices
Abstract/Contents
- Abstract
- This paper proposes a tractable structural model for the behavior of a consumer who learns and forms habits from consumption. The consumer’s dynamic programming problem is solved and applied to two sets of scanner data on purchases of yogurt to estimate the model’s structural parameters by maximum likelihood. Using ideas from multinomial logit, the consumer is viewed as making purchase decisions faced with multiple brand choices. Estimation of the model produces statistically significant estimates (as well as dollar values) of both learning and habit formation in the data.
Description
| Type of resource | text |
|---|---|
| Date created | May 2007 |
Creators/Contributors
| Author | Agafonov, Valentin | |
|---|---|---|
| Primary advisor | Segal, Ilya | |
| Degree granting institution | Stanford University, Department of Economics |
Subjects
| Subject | Stanford Department of Economics |
|---|---|
| Genre | Thesis |
Bibliographic information
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- Use and reproduction
- User agrees that, where applicable, content will not be used to identify or to otherwise infringe the privacy or confidentiality rights of individuals. Content distributed via the Stanford Digital Repository may be subject to additional license and use restrictions applied by the depositor.
Preferred citation
- Preferred Citation
- Agafonov, Valentin. (2007). Consumer Learning and Habit Formation with Multiple Brand Choices. Stanford Digital Repository. Available at: https://purl.stanford.edu/sh280jg0502
Collection
Stanford University, Department of Economics, Honors Theses
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- econ@stanford.edu
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