Bachelor
2022/2023
Discrete Choice Models and Consumer Behavior
Type:
Elective course (Economics)
Area of studies:
Economics
Delivered by:
Department of Economics
When:
4 year, 1 module
Mode of studies:
distance learning
Online hours:
20
Open to:
students of all HSE University campuses
Language:
English
ECTS credits:
5
Contact hours:
42
Course Syllabus
Abstract
The discipline "Discrete Choice Models and Consumer Behavior" is intended to teach specialists in the field of empirical evaluation of systems of demand functions. Correct estimation of demand systems is important for improving decision making both at the level of an individual firm (what prices for goods to set?) and at the level of a market regulator (to allow a merger of firms or not?).
In the course, we will consider both the classical approach based on the theory of a representative consumer, and the more modern approach based on discrete choice models that has gained popularity over the past 30 years. In this modern and rather realistic approach, it is assumed that consumers are heterogeneous, the number of consumers is very large, but each individual consumer makes a choice only from a finite number of alternatives (chooses which product to buy). In addition to lectures, seminars and tests, the course includes homework in Python.
Learning Objectives
- introduce students to modern methodology and tools for estimating demand functions
- give an introduction to the field of structural econometrics
- improve the general econometric culture of students
Expected Learning Outcomes
- obtaining theoretical knowledge in the field of classical and modern approaches to estimating systems of demand functions
- mastering a modern approach to estimating systems of demand functions in practice
Bibliography
Recommended Core Bibliography
- Discrete choice methods with simulation, Train, K.E., 2009
- Steven T. Berry. (1994). Estimating Discrete-Choice Models of Product Differentiation. RAND Journal of Economics, (2), 242. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.a.rje.randje.v25y1994isummerp242.262
Recommended Additional Bibliography
- Berry, S., Levinsohn, J., & Pakes, A. (1995). Automobile Prices in Market Equilibrium. Econometrica, (4), 841. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.a.ecm.emetrp.v63y1995i4p841.90