The Demand for Commodity Packages: The Case of Telephone Custom Calling Features
The Review of Economics and Statistics
1993
The demand for two custom calling services is investigated. The services may be bought individually or in a discounted package. A micro-theory based on discrete choice model is formulated that explicitly accounts for these purchase options. The model is estimated assuming both dependence and independence of the unobservable choice-influencing variables. The estimated parameters are used to simulate the revenue impact of price and discount changes. Copyright 1993 by MIT Press.
- DOI
- 10.2307/2109446
- Volume
- 75 (2)
- Pages
- 362
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