02217cam a22002657 4500001000700000003000500007005001700012008004100029100002400070245017200094260006600266490004200332500001900374520107200393530006101465538007201526538003601598690005601634690005601690700002101746710004201767830007701809856003801886856002701924w10278NBER20140723123132.0140723s2004 mau||||fs|||| 000 0 eng d1 aBenkard, C. Lanier.10aDemand Estimation with Heterogeneous Consumers and Unobserved Product Characteristicsh[electronic resource]:bA Hedonic Approach /cC. Lanier Benkard, Patrick Bajari. aCambridge, Mass.bNational Bureau of Economic Researchc2004.1 aNBER working paper seriesvno. w10278 aFebruary 2004.3 aWe study the identification and estimation of Gorman-Lancaster style hedonic models of demand for differentiated products for the case when one product characteristic is not observed. Our identification and estimation strategy is a two-step approach in the spirit of Rosen (1974). Relative to Rosen's approach, we generalize the first stage estimation to allow for a single dimensional unobserved product characteristic, and also allow the hedonic pricing function to have a general, non-additive structure. In the second stage, if the product space is continuous and the functional form of utility is known then there exists an inversion between the consumer's choices and her preference parameters. This inversion can be used to recover the distribution of random coefficients nonparametrically. For the more common case when the set of products is finite, we use the revealed preference conditions from the hedonic model to develop a Gibbs sampling estimator for the distribution of random coefficients. We apply our methods to estimating personal computer demand. aHardcopy version available to institutional subscribers. aSystem requirements: Adobe [Acrobat] Reader required for PDF files. aMode of access: World Wide Web. 7aL0 - General2Journal of Economic Literature class. 7aD0 - General2Journal of Economic Literature class.1 aBajari, Patrick.2 aNational Bureau of Economic Research. 0aWorking Paper Series (National Bureau of Economic Research)vno. w10278.4 uhttp://www.nber.org/papers/w10278 uurn:doi:10.3386/w10278