NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

NBER Publications by Bart Bronnenberg

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Working Papers and Chapters

July 2014Do Pharmacists Buy Bayer? Informed Shoppers and the Brand Premium
with Jean-Pierre Dubé, Matthew Gentzkow, Jesse M. Shapiro: w20295
We estimate the effect of information on consumers' willingness to pay for national brands in physically homogeneous product categories. We measure consumer information using education, occupation, and a survey-based measure of product knowledge. In a detailed case study of headache remedies we find that more informed consumers are less likely to pay extra to buy national brands, with pharmacists choosing them over store brands only 9 percent of the time, compared to 26 percent of the time for the average consumer. In a similar case study of pantry staples such as salt and sugar, we show that chefs devote 12 percentage points less of their purchases to national brands than demographically similar non-chefs. We extend our analysis to cover 50 retail health categories and 241 food and drink ...
August 2010The Evolution of Brand Preferences: Evidence from Consumer Migration
with Jean-Pierre H. Dube, Matthew Gentzkow: w16267
We study the long-run evolution of brand preferences, using new data on consumers' life histories and purchases of consumer packaged goods. Variation in where consumers have lived in the past allows us to isolate the causal effect of past experiences on current purchases, holding constant contemporaneous supply-side factors such as availability, prices, and advertising. Heterogeneity in brand preferences explains 40 percent of geographic variation in market shares. These preferences develop endogenously as a function of consumers' life histories and are highly persistent once formed, with experiences 50 years in the past still exerting a significant effect on current consumption. Counterfactuals suggest that brand preferences create large entry barriers and durable advantages for incumbent...

With Bart Bronnenberg and Matt Gentzkow, "The Evolution of Brand Preferences: Evidence from Consumer Migration," American Economic Review (forthcoming).

Contact and additional information for this authorAll NBER papers and publicationsNBER Working Papers only

 
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