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A New Approach to Estimating State Dependence in Consumers’ Brand Choices Applied to 762 Pharmaceutical Markets*
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.ORCID iD: 0000-0003-4467-8676
2021 (English)In: Journal of Industrial Economics, ISSN 0022-1821, E-ISSN 1467-6451, Vol. 69, no 2, p. 443-483Article in journal (Refereed) Published
Abstract [en]

This article shows how state dependence effects can be estimated for many markets and with few assumptions by using data on how the shares of consumers buying specific products differ between those who bought the same product on their latest purchase occasion and those who did not. Using information regarding which product was cheapest when consumers made their last purchases as instrument, I estimate that state dependence increases the probability that consumers will buy the product they bought the last time by eight percentage points. This effect is larger for women and the elderly than for men and younger consumers.

Place, publisher, year, edition, pages
John Wiley & Sons, 2021. Vol. 69, no 2, p. 443-483
National Category
Economics
Identifiers
URN: urn:nbn:se:umu:diva-186184DOI: 10.1111/joie.12266ISI: 000672470200007Scopus ID: 2-s2.0-85109379649OAI: oai:DiVA.org:umu-186184DiVA, id: diva2:1580826
Funder
The Jan Wallander and Tom Hedelius FoundationTore Browaldhs stiftelse, P2016‐0113:1Available from: 2021-07-16 Created: 2021-07-16 Last updated: 2023-09-05Bibliographically approved

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Granlund, David

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf