Videos and questions for Chapter 3b of the course "Market Analysis with Econometrics and Machine Learning" at Ulm University (taught by Sebastian Kranz)

### Profit maximization of a multi-product firm

Which sign would we expect for the cross price derivative $$\frac{\partial q_{2}(p)}{\partial p_1}$$ for two car models?

Can the conditional logit with product attributes as explanatory variables well model flexible substitution patterns? Make a guess.

For which car type will a conditional logit model predict a higher increase in the absolute demand if the price of sports car A increases (see video above)?

Which choice probabilities will the conditional logit model predict when we introduce the blue bus?

### Two consumer types

Will the model with two consumer types have the effect that a price increase of sports car A has a bigger impact on sports car B than on family car C?

### The mixed logit model

That's all. Look at the RTutor problem set 3b to study an application of mixed logit models.