An analysis of taste variety within households on the french soft drink market
Résumé
The objective of this paper is to adapt the previous work of Bhat to a household choice behavior of food consumption. We want first to guess the bias in the estimation of price elasticities by not taking account of multiple discrete-continuous choice of consumers. Then, we want to analyze in the Soft Drink market whether consumers seek variety. Moreover, we deals with omitted variable problem that occurs in this type of consumer choice models. Our paper suggests that not taking into account the quantity choice could highly underestimate price elasticities and could then bias competition policy analyses.