Blurred boundaries: A flexible approach for segmentation applied to the car market
模糊的市场边界:汽车市场细分的灵活建模AI 解读 ↓
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AI 根据所提供的论文材料归类:摘要提出有序嵌套Logit产品需求模型,并用于汽车选择及产品和补贴反事实分析。
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Prominent features of differentiated product markets are segmentation and product proliferation blurring the boundaries between segments. I develop a tractable demand model, the Ordered Nested Logit, which allows for asymmetric substitution between segments. I apply the model to the automobile market where segments are ordered from small to luxury. I find that consumers, when substituting outside their vehicle segment, are more likely to switch to a neighboring segment. Accounting for such asymmetric substitution matters when evaluating the impact of new product introduction or the effect of subsidies on fuel‐efficient cars.