Discrete Choice Theory of Product Differentiation: (The MIT Press)

Table of Contents:
Part 1 Introduction: product differentiation and discrete choice models; some basic themes; organization of the book. Part 2 Review of discrete choice models: models with discrete responses; foundations of discrete choice models; models with stochastic decision roles; models with stochastic utility; the multinomial logit; generalizations of the multinomial logit; stochastic dependency among alternatives. Part 3 The representative consumer approach: discrete choice models and the demand for differentiated products; reinterpretation of demand with a continuum of consumers; a representative consumer theorem for discrete choice models; the multinomial logit representative consumer; the logit representative consumer with endogenous total consumption; the CES representative consumer model. Part 4 The address approach: description of the address model; an address theorem for discrete choice models; some applications; the CES as an address model. Part 5 A synthesis of alternative preference foundations of product differentiations: a three-way synthesis; the alternative interpretation of the hotelling model; the Logit and CES models; comparison of parameters - a synthesis of the alternative approaches for the logit and CES. Part 6 Oligopoly with product differentiation: models of product differentiation; existence of a price equilibrium; properties of short-run and long-run equilibria; market equilibrium and optimum product diversity. Part 7 Oligopoly and the Logit model: the basic Logit oligopoly model; optimum and equilibrium product diversity - the Logit and the CES; the Logit with an outside alternative; the logit and quality choice; a Logit model with Search; multiproduct oligopoly - a nested Logit approach; network externalities with differentiated products. Part 8 Product selection, location choice, and spatial pricing: locational competition; product selection and price competition; spatial price policies and location. Part 9 Spatial competition and the logit model: probabilistic discrete choice approach and spatial competition; competition over locations; location choice under mill pricing; market equilibrium and optimum under alternative spatial price policies.

About the Author :
Simon P. Anderson is Associate Professor of Economics at the University of Virginia. André de Palma is Professor of Marketing at the University of Geneva. Jacques-Franç ois Thisse is Professor of Economics at the University of Paris I-Sorbonne, and is on the staff of the Center for Operations Research and Econometrics in Louvain-la-Neuve, Belgium.