How Much are You Paying for a Video Game? Discrete Choice Model with Used Market Activi... - 0 views
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Garrett Eastman on 25 Dec 11Abstract Berry (1994) and some later papers provide a way to estimate dierentiated product models. When the product of interest is a durable good, consumers do not pay the entire retail price due to the existence of the second hand market. This paper employs data from the US video game market and proposes a new angel to investigate the demand side of a durable good. The results of the empirical investigation suggests that the inclusion of the future resale price makes the model estimation more sensible and reasonable.